Tax season isn’t the most wonderful time of the year, but a free filing program that first launched last year aims to lessen the financial burden for taxpayers in Washington and 24 other states — for the time being, at least.

Amid threats of being dismantled by the likes of billionaire Elon Musk as part of a crackdown on purported “government waste,” the IRS’ Direct File program remains available after debuting to strong reviews from taxpayers who utilized the tool in its first year of operation in 2024.

More than 140,000 taxpayers used Direct File at no cost during its 2024 trial period, claiming more than $90 million in refunds. The average age of these taxpayers was 33, according to the IRS, with an average income of $44,000; a quarter had income under federal poverty guidelines.

After being limited to 12 states — including Washington — for taxpayers with straightforward W-2s last year, the program was expanded to 25 states for 2025 and is now capable of taking on more complicated tax returns.

Program at risk

The program came about as a result of the Inflation Reduction Act that was signed into law in 2022, which gave the IRS nine months and $15 million to report on how to create its own “direct file” system.

Private tax preparation companies that charge people to use their software, such as Intuit, have targeted Direct File since its rollout and have spent millions lobbying Congress to scuttle the program, arguing that free filing options already exist.

Several organizations, including private companies, offer free online tax preparation assistance to taxpayers who fall under certain income limits. The IRS also makes fillable forms available online on its website, but they are complicated and the onus is on taxpayers to calculate their tax liability.

During his confirmation hearing in January, Scott Bessent, now treasury secretary, committed to maintaining the Direct File program for at least the 2025 tax season that began Jan. 27, after which he said he would then “study” the program.

But the program came under apparent threat earlier this month when Musk, designated as a temporary “special government employee,” posted on his social media site that he had “deleted” a government agency, 18F, that worked on technology projects such as the Direct File program.

According to the Associated Press, while Musk’s post may have indicated that the group of workers at the agency had been terminated, “an individual with knowledge of the IRS workforce said the Direct File program was still accepting tax returns.” The website for 18F remains operational, as does the Direct File website.

While Direct File appears to be safe for this tax season, its fate for 2026 and beyond seems very much in doubt.

New tools

While initially offered to just low- and moderate-income taxpayers with simple returns in a dozen states, eligibility has expanded for the 2025 tax season. Direct File is now available to taxpayers in 13 additional states and has added more features to cover more tax situations.

The IRS states that, on average, Americans spend 13 hours and $270 filing their taxes every year.

This year, according to the IRS’ online eligibility tool, Direct File is available for single filers with wages of $200,000 or less in 2024 — the cutoff drops to $168,600 for those with more than one employer. Married couples filing jointly are eligible as long as their wages don’t exceed a combined $250,000.

Those who itemize their deductions remain unable to use the program. According to the IRS, zbout 9 out of 10 people filing federal taxes take the standard deduction.

During last year’s pilot program, Direct File was limited to people with incomes from an employer (W-2), Social Security benefits (SSA-1099), unemployment payments (1099-G) and interest income under $1,500 (1099-INT). This year, the program can also be used by people with higher interest income and certain types of retirement income, as well as those with deductions for contributing to a health savings account.

Direct File can now also handle returns claiming more types of tax credits, which in 2024 was limited to the earned-income tax credit, the child tax credit, and the credit for other dependents. Now, the system will cover filers claiming the child and dependent care credit; the premium tax credit for those who get health coverage from the Affordable Care Act marketplace; the credit for the elderly and disabled; and the retirement savings contributions credit, also known as the “saver’s credit.”

Users will have the option of having their Direct File tax form filled in with some information the IRS already has on file, such as their name, address and Social Security number. They’ll also be able to have financial information from their W-2 statement imported electronically, and can use Direct File on a smartphone, laptop, tablet or desktop computer.

The program requires a Social Security number or Individual Taxpayer Identification Number for themself and any spouse or dependents being claimed, as well as

An online IRS account with ID.me is required to use Direct File, which the agency says is needed in order to prevent tax fraud and keep taxpayers’ information secure. A current driver’s license, state identification, passport or passport card will also need to be uploaded in order to verify your identity.

Visit irs.gov/filing/irs-direct-file-for-free for more information about the program.