Janet Yellen Secretary of the Treasury | Twitter Website
The U.S. Department of the Treasury and Internal Revenue Service (IRS) announced today that Connecticut will join IRS Direct File for Filing Season 2025. This initiative, enabled by President Biden’s Inflation Reduction Act, aims to improve customer service and ensure taxpayers claim eligible benefits and deductions.
Following a successful pilot program in 12 states, which saw 140,000 taxpayers claim over $90 million in refunds and save approximately $5.6 million in filing costs using the free online tool, the Treasury and IRS have decided to expand Direct File as a permanent offering. Connecticut joins Oregon, New Jersey, Pennsylvania, and New Mexico in adopting this system. At least 290,000 Connecticut taxpayers will be eligible to use this free online filing tool next season.
“Thanks to President Biden’s Inflation Reduction Act, more than 290,000 Connecticut taxpayers will be able to file their taxes online for free, directly with the IRS this coming Filing Season. Direct File will save Connecticut residents time and money and help ensure they receive the tax benefits they are owed,” said U.S. Secretary of the Treasury Janet L. Yellen. “After a successful pilot this Filing Season, we are pleased to expand the program as a permanent offering and welcome Connecticut as the latest new state to offer this free option to taxpayers.”
“The Direct File tool will make it easier and more convenient for the average person to file their taxes, and it will help them save both time and money by avoiding the need to purchase for-profit tax filing software,” said Governor Ned Lamont. “We’re grateful to the U.S. Department of the Treasury and the Internal Revenue Service for making this resource a reality, and we appreciate that Connecticut residents will benefit from this service in the upcoming filing season.”
The Treasury Department aims to expand Direct File's reach nationwide in coming years, focusing on working- and middle-class taxpayers. This initiative is part of the Biden-Harris Administration’s efforts to provide modern customer service using resources from the Inflation Reduction Act. It also aligns with an IRS Strategic Operation Plan goal: ensuring taxpayers receive eligible credits such as Child Tax Credit and Earned Income Tax Credit.
BACKGROUND ON THE DIRECT FILE PILOT PROGRAM
The average American spends $270 and 13 hours filing their taxes according to a Taxpayer Burden Survey. The Inflation Reduction Act required an IRS study on creating an IRS-run Direct e-File System allowing free direct tax filings with the IRS. Following positive findings from this study indicating strong taxpayer interest in such an option, a pilot was initiated during Filing Season 2024.
In its initial phase across 12 states with simple tax situations available for five weeks after extensive testing, over 140,000 Americans successfully filed using Direct File—claiming more than $90 million in refunds while saving about $5.6 million in federal return preparation fees alone.
User feedback has been overwhelmingly positive; a GSA Touchpoints survey reported that 90 percent of over 11,000 respondents rated their experience as “Excellent” or “Above Average.” Many users who had paid for tax preparation previously appreciated that Direct File was always free without hidden fees or upselling attempts during filing.
Taxpayers found Direct File straightforward with valuable features helping them understand various tax situations better while appreciating its no-cost assurance throughout their filing process directly with IRS confidence.
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