WASHINGTON (dpa-AFX) - The U.S. Department of the Treasury and Internal Revenue Service announced that Oregon will become the first new state to offer new free tax filing option next year.
Oregon will join IRS Direct File in Filing Season 2025.
A successful Pilot Program implemented in 12 states saw 140,000 taxpayers claim more than $90 million in refunds and save an estimated $5.6 million in filing costs using the new free online filing tool from the IRS.
It is estimated that at least 580,000 Oregonians will be eligible to use the free online filing tool next Filing Season.
'Direct File will save Oregonians time and money and ensure they receive the tax benefits they are owed,' said U.S. Secretary of the Treasury Janet Yellen.
The Treasury Department said its goal in the coming years is to expand the reach and tax scope of Direct File to provide an option for working-and middle-class taxpayers nationwide.
The average American spends $270 and 13 hours filing their taxes, according to Taxpayer Burden Survey. President Biden's Inflation Reduction Act required the IRS to study the potential for an IRS-run Direct e-File System that would allow taxpayers to file taxes for free, directly with the IRS. After reviewing the report, which showed strong taxpayer interest in a free IRS filing option, the Treasury Department initiated a pilot of IRS Direct File during the 2024 Filing Season.
In Filing Season 2024, Direct File was available to taxpayers with simple tax situations in 12 states. The Pilot exceeded expectations with more than 140,000 Americans successfully filing in five weeks.
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