Maryland is the latest state to join the Internal Revenue Service’s (IRS) Direct File online tool for the 2025 filing season, which will enable the preparation and filing of taxes electronically and free of charge.
Gov. Wes Moore announced the state’s decision to add the tool on Sept. 4, joining 12 other states that used the Direct File system in 2024 during its pilot phase.
The initial group of states included Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.
“Today, we take a big step forward to make tax season easier, simpler, and more affordable for all Marylanders,” Moore said at an event announcing the new partnership. “Maryland doesn’t just talk about partnership, we move in partnership – and this latest win shows what’s possible when the state, federal government, and community partners work together.”
The IRS said they will make the Direct File a permanent, free electronic filing option for taxpayers during the 2025 tax season.
“Thanks to President Biden’s Inflation Reduction Act, more than 700,000 Maryland taxpayers will be able to file their taxes online for free, directly with the IRS this coming filing season,” said Janet Yellen, the U.S. secretary of the Treasury. “Direct File will save Marylanders time and money and help ensure they receive the tax benefits they are owed.”
Americans filed and claimed more than $90 million in refunds and saved an estimated $5.6 million in tax preparation fees on their Federal returns, according to the release.
“In countries across the globe, residents enjoy much simpler return-free tax systems,” said Maryland Comptroller Brooke Lierman. “While our state and nation are not there yet, with Direct File and our agency’s new Maryland Tax Connect system for individuals coming this term, Maryland will have the most transparent, efficient, and modern system in the nation.”
Maryland is the second state to announce that it will partner with Code for America, a civic technology company that launched FileYourStateTaxes to allow taxpayers to easily file their state returns, according to the release. New York first partnered with Code for America last year.
“Code for America is committed to ensuring taxpayers across Maryland have access to free, easy online state tax filing,” Amanda Renteria, Code for America CEO, said in a statement. “Through our FileYourStateTaxes tool, more people will be able to file a return and gain access to tax benefits that help working families. We look forward to applying the mindful use of technology to the tax filing process in Maryland and providing this revolutionary service to the state’s people.”
