The Idaho State Tax Commission has confirmed, on 23 January 2025, that Idaho will participate in the IRS Direct File Programme starting with the 2025 tax filing season.
Idaho expects to process over 1.03 million income tax returns in 2025. An estimated 210,000 Idaho taxpayers will be eligible to use the free programme.
With Direct File, taxpayers begin by filing their federal return using the IRS tool at directfile.irs.gov. The tool walks them through interview-style questions to prepare for the return.
Once the federal return is completed, the taxpayer will click a button, taking them directly to Idaho’s FileYourStateTaxes tool to prepare their Idaho state return. Much of the information from the federal return will be populated into the state tool, creating a quick, seamless experience.
Direct File is a free online tax filing service provided by the IRS, introduced through the Inflation Reduction Act of 2022. Direct File is another option taxpayers have to e-file their federal and state taxes based on their eligibility and tax situations.
To use Direct File, taxpayers must have lived in Idaho for all of 2024, and they must use the standard deduction. They can’t itemise, but they can take some credits and deductions. See directfile.irs.gov for more requirements.
