Direct File is free, easy and trusthworthy — so why does Trump's administration want to end it?
Filling out tax forms, in this file photo from 2022. (Photo by Senior Airman Thomas Karol/U.S. Air Force)
It takes most Americans an average of $270 and 13 hours to do their taxes. With Direct File, it takes less than 60 minutes to do it yourself and costs nothing. Direct File is the IRS's new electronic option for taxpayers to file their income tax returns directly with the IRS for free.
This tax season, Direct File's pilot expanded to 25 states, including Maryland. Our nonprofit organization, the CASH (Creating Assets, Savings and Hope) Campaign of Maryland (CASH), supported the development of the Maryland State Return add-on to IRS Direct File that directly linked taxpayers to a state return upon completion of their federal tax return.
Through targeted outreach and partnerships with local organizations, we helped raise awareness about Direct File and connected thousands of Marylanders with free, accessible tax filing options. This work builds on our long-standing commitment to financial stability and economic empowerment for working families: We promote economic advancement for low- to moderate-income individuals and families and lead a coalition of over 50 free tax preparation sites known as Volunteer Income Tax Assistance (VITA) sites across the state.
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Like VITA, Direct File gives Marylanders a free, easy, and trustworthy option to meet their tax filing obligations. Unlike VITA, Direct File gives taxpayers an option that doesn't require securing limited appointments and allows them to get their taxes done from home (or even cellphone!).
This flexibility is especially important for people with nontraditional work schedules, caregiving responsibilities or transportation barriers. By removing these obstacles, Direct File ensures that more people can meet their tax obligations on their own time, without sacrificing work hours or family commitments.
Direct File echoes the goals of VITA while expanding its capacity, giving more low- and moderate-income Americans the opportunity to file their taxes for free rather than paying for and using a third-party tax preparer or software. While VITA is reliant on trained and certified volunteers and nonprofits for capacity, Direct File can be accessed by millions.
The Trump administration and Department of Government Efficiency (DOGE) told reporters in April that Direct File would not continue next year, citing 'hidden costs,' 'taxpayer confusion' and the expense of administering the program.
There are no costs, hidden or otherwise, to use the program. Direct File is completely free to eligible taxpayers. Because the program allows taxpayers to file directly with the IRS and their states, users are never redirected to paid options.
The same cannot be said about Free File compliant software offered by traditional tax software developers like TaxAct and TaxSlayer. Notably, TurboTax by Intuit and H&R Block, two of the largest and most well-known paid tax preparation companies, withdrew from the Free File Alliance in 2021.
Filing your taxes can be confusing, but Direct File is simpler and more user-friendly than third-party tax software. Participants during the first year of the program said it themselves: 90% ranked their overall experience as Excellent or Above Average, 90% who used customer support rated that experience as Excellent or Above Average, and 86% of respondents said that their experience with Direct File increased their trust in the IRS. Plus, Direct File users have access to customer support from real people during the entire process.
Continuing to build Direct File is an investment that will save time and money for Americans far into the future. If Direct File continues, the taxpayer dollars already invested will not go to waste.
Progress has already been made to expand the program. Direct File can grow to serve more states and a wider range of tax situations. Future versions of the program can simplify the process by prefilling information the IRS already has (like the details of a W-2 form). If it is not preemptively shut down, Direct File will continue to be improved based on real feedback from its users.
Paying taxes allows our country to thrive, and Americans should not be burdened with extra costs and time-consuming processes to meet their filing obligations. Protecting the Direct File program is an investment in everyday Americans – making their government work for them.
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