Oregon to offer free tax prep & filing option next year
By Joe Hathaway on Thursday, June 27th, 2024 in Columbia Basin News More Top Stories
SALEM – The U.S. Department of the Treasury and the Internal Revenue Service (IRS) announced that Oregon will be the first state to join the IRS Direct File in the 2025 filing season. This initiative, part of the Inflation Reduction Act, aims to enhance customer service and ensure taxpayers claim all eligible benefits and deductions.
According to a press release, the announcement follows a successful pilot program across 12 states, where 140,000 taxpayers claimed over $90 million in refunds and saved an estimated $5.6 million in filing costs using the IRS’s new free online filing tool. Approximately 580,000 Oregonians will be eligible to use this tool next year.
“Thanks to the Inflation Reduction Act, hundreds of thousands of Oregonians will be able to file their taxes online for free directly with the IRS next year,” said U.S. Secretary of the Treasury Janet L. Yelena. “Direct File will save Oregonians time and money and ensure they receive the tax benefits they are owed.”
Oregon Governor Tina Kotek praised the program, stating, “The Direct File Program is a game-changer for taxpayers. This free filing option will save Oregonians time and money when filing next year. ”
The Treasury Department aims to expand Direct File to provide an option for working and middle-class taxpayers nationwide. Direct File also supports the IRS’s Strategic Operation Plan to ensure taxpayers receive all eligible tax credits, including the Child Tax Credit and Earned Income Tax Credit. The IRS plans to continually improve the product to keep it free, secure, and easy to use.
Background on the Direct File Pilot Program
The average American spends $270 and 13 hours filing their taxes, according to the Taxpayer Burden Survey. The Inflation Reduction Act required the IRS to study the potential for an IRS-run Direct e-File System, which would allow taxpayers to file taxes for free directly with the IRS. Following a positive report indicating strong taxpayer interest, the Treasury Department initiated a pilot of IRS Direct File during the 2024 filing season.
In 2024, Direct File was available to taxpayers with simple tax situations in 12 states. The pilot exceeded expectations, with over 140,000 Americans successfully filing during the five weeks the program was widely available. These filers claimed over $90 million in refunds and saved an estimated $5.6 million in tax preparation fees. Users of Direct File reported high satisfaction, with 90 percent rating their experience as “Excellent” or “Above Average” in a GSA Touchpoints survey of over 11,000 users. Many users valued the straightforward process, the opportunity to learn about various tax situations, and the absence of hidden fees or upselling attempts. Filing directly with the IRS also gave users confidence in the accuracy of their filings.
