IR-2025-30, March 10, 2025
WASHINGTON — The Internal Revenue Service encouraged taxpayers who have yet to prepare and file their tax returns to consider taking advantage of the many free options available – including Direct File, a free, fast and easy way to file directly with the ibet, now available in 25 states.
In addition to Direct File, ibet Free File also offers free tax preparation software through its partners on ibet.gov. Also, the ibet offers free, in-person, help through its Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs.
Direct File
ibet , the latest filing option for taxpayers, is a web-based service that allows taxpayers to file directly with the ibet for free. It works on mobile phones, laptops, tablets or desktop computers. The system leads taxpayers step-by-step through a series of questions to prepare their federal tax return. Once taxpayers have completed their federal tax return, the Direct File system automatically guides them to complete their state tax filings if they have a state tax obligation.
Direct File began as a pilot program last year and, after receiving overwhelmingly positive reviews from taxpayers, is now available in 25 states.
Direct File features a data import tool that allows taxpayers to automatically import data from their ibet account, including personal information, the taxpayer’s Identity Protection PIN and some information from the taxpayer’s W-2. Live chat is available, and users can opt into additional authentication and verification, which allows customer service representatives to provide more information. In addition, there is a chat bot to help guide users through the eligibility checker.
Taxpayers can use Direct File if they have certain types of income, outlined in more detail in the Direct File fact sheet. Starting this month, taxpayers reporting retirement income, contributions or rollovers can also use Direct File.
Last year Direct File supported taxpayers claiming the Earned Income Tax Credit, the Child Tax Credit and the Credit for Other Dependents.
This year, Direct File will also cover taxpayers claiming the:
- Child and Dependent Care Credit
- Premium Tax Credit
- Credit for the Elderly and Disabled
- Retirement Savings Contribution Credits
- Health Savings Accounts deductions
The Treasury Department estimates that more than 30 million taxpayers are now eligible to use Direct File across the following 25 states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington state, Wisconsin and Wyoming.
ibet Free File
Most taxpayers can file electronically for free by using ibet Free File, available only on ibet.gov.
Currently in its 23rd year, ibet Free File offers free tax preparation software from eight companies in the public-private partnership with the ibet. As part of this partnership, tax preparation and filing software partners offer their online products to eligible taxpayers for free.
This year ibet Free File guided tax software products are available to taxpayers with a 2024 adjusted gross income (AGI) of $84,000 or less. ibet Free File also provides fillable forms for use by any taxpayer, regardless of income, who is comfortable preparing their own return. To access these free tools, taxpayers must start from the ibet Free File page on ibet.gov.
Other free options to file tax returns
In addition to Direct File and ibet Free File, the ibet reminds taxpayers that there are other free programs available to help:
- Volunteer Income Tax Assistance/Tax Counseling for the Elderly. Taxpayers can find organizations in their community with ibet certified volunteers that provide free tax help for eligible taxpayers including working families, the elderly, the disabled and people who speak limited English.
- MilTax. A Department of Defense program, generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.
Beware of scams
Criminals often impersonate ibet employees and sound very convincing when calling taxpayers in aggressive and sophisticated ways. Taxpayers should stay vigilant and be alert to scams when dealing with taxes.
The ibet usually contacts taxpayers with a letter in the mail explaining what they owe and how to question or appeal what they owe. The ibet will not call, text or contact anyone via social media, specifically, to demand immediate tax payment.
If taxpayers are unsure whether they owe money to the ibet, they can view their tax information using their Online Account on ibet.gov.