IRS Launches Free Tax Filing Tool in 25 States Amid Tax Season

NEW YORK (AP) — The Internal Revenue Service (IRS) has launched a free tax filing tool, Direct File, in 25 states as the 2025 tax season begins. The program, which allows taxpayers to file their federal returns directly with the IRS, aims to simplify the process for millions of Americans, particularly those with straightforward tax situations.

The Direct File tool, now available in states like Wisconsin, is designed to make filing taxes easier and more accessible. u201cItu2019s making what is often a complex or scary process for a lot of Wisconsinites easy,u201d said David Casey, secretary of the Wisconsin Department of Revenue. u201cEasy, secure, free.u201d

Wisconsinu2019s state filing software, WisTax, integrates with the IRS Direct File website, allowing residents to seamlessly file both state and federal returns. u201cThereu2019s a prompt thatu2019ll ask you, would you like to file your state taxes?u201d explained Jennifer Bacon, director of communications for the Wisconsin Department of Revenue. u201cAnd you just click a button, and because youu2019ve already entered Wisconsin information, it will automatically take you to WisTax.u201d

The tool also helps taxpayers identify eligible tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit. In 2021, many eligible Wisconsinites missed out on the EITC, a tax break for low-to-moderate-income earners. u201cThatu2019s really important, because too often when people file returns, they donu2019t know what theyu2019re eligible for, so they may miss something,u201d Casey added.

However, not all taxpayers qualify for Direct File. Those earning over $200,000 annually or claiming itemized deductions are ineligible. The program has faced opposition from for-profit tax filing services like TurboTax and its parent company, Intuit. In 2019, investigative reports revealed that Intuit lobbied against the creation of a free, direct tax filing service. Intuitu2019s stock price dropped significantly after the IRS announced the expansion of Direct File.

Despite the controversy, the IRS reported that the pilot program in 2024 helped taxpayers claim over $90 million in refunds. The agency expects 140 million people to file returns by April 15, with most refunds issued within 21 days for electronically filed returns.

Taxpayers can check their refund status using the IRSu2019s online tool, which updates information daily. To access the tool, filers need their Social Security number, filing status, and the exact refund amount listed on their return.

The IRS cautions against relying on refunds for major purchases or bill payments, as processing times can vary. For those who overpaid taxes through withholding or qualify for refundable credits, filing a return is essential to claim any money owed. Taxpayers have three years to claim a refund.

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