Pennsylvanians will be able to file their federal taxes for free starting from the 2025 tax season, thanks to a new partnership between the state and the U.S. Treasury. The program, known as IRS Direct File, will allow residents to file their taxes directly with the IRS through an online portal. The initiative is part of the U.S. Treasury's efforts to improve the taxpayer experience and is funded by the Inflation Reduction Act.
The IRS plans to make Direct File a permanent option following a successful pilot program and feedback from various partners. The pilot program, which was available to taxpayers with simple tax situations in 12 states, exceeded expectations with more than 140,000 Americans successfully filing with the program. These filers claimed more than $90 million in refunds and saved an estimated $5.6 million in tax preparation fees on their federal returns alone.
U.S. Treasury Secretary Janet Yellen and Gov. Josh Shapiro announced the expansion of the program to Pennsylvania, making it the latest state to join the initiative. The program is expected to be available to at least 1.5 million Pennsylvanians in the next tax filing season.