The Impact of Direct File—by the Numbers - Economic Security Project
economicsecurityproject.org
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Summary Direct File is the Internal Revenue Service’s revolutionary new project to provide free, simplified, public online tax filing for the first time in U.S. history. The program launched in 2024 with a pilot program that is intentionally restricted in scope to a small share of the taxpayers that could ultimately benefit from the service.…

Direct File is the Internal Revenue Service’s revolutionary new project to provide free, simplified, public online tax filing for the first time in U.S. history. […] This report is the first to estimate the total financial benefits of the Direct File program for American taxpayers. It finds that, at maturity in five years, Direct File would save the average user $160 in filing fees and hours of their time each year, which saves Americans a total of $11 billion annually between filing fees and time costs. By breaking down barriers to filing, Direct File would also deliver up to $12 billion each year in additional tax credits to low-income families currently missing out.

These savings represent an enormous return on investment given the small net cost of the program. For every dollar invested in the program, Direct File delivers $106 in benefits to American taxpayers, between savings on tax preparation fees and access to untapped tax credits. Few programs deliver this kind of bargain.

For the rest of us who aren’t in states with the trial this year, I’ve been using Freetaxusa for a few years. Free federal, $15 state.

TehPers
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Free federal? Even if your state doesn’t have income tax? Now that sounds quite nice.

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