July 30, 2024
Susan Tompor/USA TODAY NETWORK
Pennsylvania has joined the free IRS Direct File program. The service will be available statewide in for the 2025 tax season.
Pennsylvania residents will be able to file their taxes through the IRS's free online tool in 2025, Gov. Josh Shapiro announced Tuesday.
The state is the latest to join the IRS Direct File program, which launched as a limited pilot during the 2024 tax season. Earlier this year, the IRS and Treasury Department made the program a permanent fixture and offered it to all 50 states. Pennsylvania is now enrolling, following in the steps of Oregon, which joined in June, and New Jersey, which opted in last week.
The pool of pilot states included Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
Direct File is designed to provide an affordable alternative to software or accounting services, which can cost taxpayers hundreds or thousands in fees. It also points users to credits and deductions they can claim. The Direct File program was a result of the Inflation Reduction Act, which earmarked funds for the IRS to study and implement a free electronic filing system.
According to the U.S. Treasury, the roughly 140,000 people who participated in the pilot saved $5.6 million in federal filing charges and received $90 million from their returns. They also reported high satisfaction. In a survey of over 11,000 users, 90% of respondents rated their Direct File experience as "excellent" or "above average."
Though Direct File is a federal service, Shapiro said Pennsylvanians would be able to file both their state and federal taxes on the platform.
But the eligibility requirements were unclear as of Tuesday afternoon. The pilot was initially offered to taxpayers with "relatively simple tax situations" and the IRS says it could take years to expand the program to "support most common tax situations." Shapiro said at a Tuesday news conference that the tool would "be in effect for all Pennsylvanians for the next filing season." Treasury Secretary Janet Yellen, however, said the service would be open to more than 1.5 million Pennsylvanians starting in January.
Shapiro's office did not immediately clarify the discrepancy or eligibility requirements.
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