Will the IRS' free Direct File option return next year?

Although some lawmakers and taxpayers are calling the IRS' pilot test for a free, government-run tax filing tool a success, the future of the program is still unclear. 

According to the IRS, during the 2024 tax filing season more than 140,000 Americans filed their federal taxes using the new online tool, known as Direct File. This saved them an estimated $5.6 million in tax preparation fees, and more than 130 Democratic lawmakers recently signed a letter to the U.S. Department of the Treasury urging the IRS to expand the program and make it permanent. 

The IRS has not yet confirmed whether the Direct File program will return next year, but IRS Commissioner Danny Werfel said the agency will announce its decision by the end of the spring after analyzing feedback from various stakeholders. 

Read more: Money

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