WASHINGTON, D.C. – Today, the U.S. Department of Treasury announced that thanks to the Inflation Reduction Act, Pennsylvania will be the next state to offer a free IRS Tax Filing Option in 2025.
“This is another example of the extraordinary improvements made to the Internal Revenue Service under the Biden-Harris Administration,” Rep. Dean said. “The funding made available by the Inflation Reduction Act cut average call wait times by 89%, allowed the IRS to recoup $1 billion from millionaire tax-evaders, and now, allows taxpayers to file taxes easily and for free. I am encouraged by the progress already made by the Inflation Reduction Act and look forward to seeing this crucial legislation continue to ease burdens for the American people.”
The average American spends $270 and 13 hours filing their taxes. In Filing Season 2024, the Treasury Department initiated a pilot of IRS Direct File. 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 with the program. These filers claimed more than $90 million in refunds and saved an estimated $5.6 million in tax preparation fees on their federal returns alone.
Now, Pennsylvania becomes the next state to offer Direct File to its residents following Oregon and New Jersey. At least 1.5 million Pennsylvanians will be eligible to use the free online filing tool next Filing Season.
The Treasury Department’s 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. Direct File is central to the Biden-Harris Administration’s efforts to deliver modern, world-class customer service using Inflation Reduction Act resources. Direct File also advances a goal of the IRS’s Strategic Operation Plan (SOP) to ensure that taxpayers receive tax credits that they are eligible for, including the Child Tax Credit and Earned Income Tax Credit. The IRS will continue to improve the product over time and ensure that it remains free, secure, and easy to use.
Rep. Madeleine Dean is a mother, grandmother, attorney, professor, former four-term member of the Pennsylvania House of Representatives, and U.S. Representative for the Fourth District of Pennsylvania.
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