The Treasury Department and the Internal Revenue Service said Tuesday that Maine will be the latest state to join the IRS Direct File free tax prep system for filing season 2025.
More than 120,000 Maine taxpayers will be eligible to use the free online filing tool next filing season.
The free online filing system was pilot tested last tax season in 12 states, and the IRS
The Treasury and the IRS have been working with interested states to offer Direct File to their taxpayers with Maine becoming the latest state to join, following Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, North Carolina and Wisconsin.
"Thanks to President Biden's Inflation Reduction Act, more than 120,000 Maine taxpayers will be able to file their taxes online for free, directly with the IRS this coming Filing Season. Direct File will save Mainers time and money and help ensure they receive the tax benefits they are owed," said U.S. Treasury Secretary Janet Yellen in a statement. "After a successful pilot this filing season, we are pleased to expand the program as a permanent offering and welcome Maine as the latest new state to offer this free option to taxpayers."
"Thanks to our new partnership with the federal government, beginning next January, Maine people will have the ability to file their Federal taxes online for free, building on our longstanding success in allowing Maine people to file their State taxes online for free," said Maine Governor Janet Mills in a statement. "This new IRS Direct File tool will streamline the process of filing taxes and save Maine people valuable time and money. I thank President Biden and Vice President Harris for the Inflation Reduction Act, which made this exciting new service possible."
After using Direct File to file their federal return for free, Maine residents will be connected with the Maine Tax Portal to file their state return for free. The Maine Revenue Services plans to work with the IRS on the goal of integrating Maine Tax Portal and Direct File by 2026 so taxpayers can easily complete their state taxes by transferring their federal return information over from Direct File.
"When tax season rolls around, with it comes the stress of having to navigate the complicated, time-consuming, and expensive federal filing process," said Senator Angus King in a statement. "When we designed the tax provisions in the Inflation Reduction Act, we wanted to save taxpayers their time and money, simplify filing, and help ease the chokehold third-party tax preparers or software companies have on Maine people. This is a long overdue step that will build on Maine's already successful free state tax filing program, and will be available to the 120,000 Maine people with simple filings – to keep more hard-earned dollars in people's pockets."
