The Internal Revenue Service (IRS) has introduced a significant change in the way taxpayers file their federal tax returns. Beginning in the 2025 tax season, the IRS plans to make Direct File a permanent option for individuals to submit their tax returns directly to the agency.
Yahoo Finance’s Rebecca Chen sheds light on the platform’s features and how they will benefit eligible Americans.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Angel Smith
The Internal Revenue Service (IRS) has introduced a significant change in the way taxpayers file their federal tax returns. Beginning in the 2025 tax season, the IRS plans to make Direct File a permanent option for individuals to submit their tax returns directly to the agency.
Yahoo Finance’s Rebecca Chen sheds light on the platform’s features and how they will benefit eligible Americans.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Angel Smith
The Internal Revenue Service (IRS) has introduced a significant change in the way taxpayers file their federal tax returns. Beginning in the 2025 tax season, the IRS plans to make Direct File a permanent option for individuals to submit their tax returns directly to the agency.
Yahoo Finance’s Rebecca Chen sheds light on the platform’s features and how they will benefit eligible Americans.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Angel Smith
The Internal Revenue Service (IRS) has introduced a significant change in the way taxpayers file their federal tax returns. Beginning in the 2025 tax season, the IRS plans to make Direct File a permanent option for individuals to submit their tax returns directly to the agency.
Yahoo Finance’s Rebecca Chen sheds light on the platform’s features and how they will benefit eligible Americans.
For more expert insight and the latest market action, click here to watch this full episode of Wealth!
This post was written by Angel Smith
Video Transcript
The IRS recently announced that the direct file program and online free tax filing tool operated by the agency is here to stay following a successful filing season pilot.
The agency made direct file a permanent option for filing federal tax returns starting in the 2025 tax season.
So what exactly does this mean for you and your finances and how can this program set you up for success next tax season?
Yeah, finance reporter Rebecca Chen joins me now with the details.
Hey, Rebecca.
Hey, Brad.
So the direct file is a program that allows taxpayers to file their taxes directly with the IRS for free.
And this is phenomenal because it’s the first time us has a filing system like this.
In the past, we’ve always been expected to find our own method of filing taxes and often times that means paying for commercial software.
So this could be a game changer because it could change how and how much we pay for tax preparation.
Now, the biggest question from this program is who is eligible while the IRS has said they are expanding the program, they haven’t specified to what market they are expanding to what we do know is that they have invited all 50 states in Washington DC to join them in the program for next year.
And we chatted with expert and one expert told us that he believes the program will be for families making $400,000 or less.
And the reason is because this has been the income cut off that the IRS has been using in other campaigns recently.
Um And based on the pilot program, we are expecting that taxpayers earning a W-2 receiving Social Security and unemployment benefits could also qualify for this direct file in the coming year.
And now after we, after this biggest question of who is eligible, we also want to chat about what is the biggest draw of switching to direct file.
Experts are saying the biggest draw is really simple, it is free.
Um, a lot of Americans like we mentioned are going to commercial software for tax preparation and on average, the software fees are about $270.
So that will be a big change or a big chunk of change that they save if they were to switch to the direct file.
There definitely has been some concerns about the reliability and trustworthy of the IRS system.
But what we are hearing from experts is that the IRS just want to help taxpayers to file a good and accurate, get the benefit that they deserve.
And direct file will be a system that reflects that.
All right, Rebecca Chen.
Thanks so much for breaking this down and what this program could do for millions of tax return filers out there.
Thanks so much.
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