The US Department of the Treasury and Internal Revenue Service (IRS) announced, on 9 August 2024, that Connecticut will join the IRS Direct File for Filing Season 2025.
The IRS Direct File was made possible by President Biden’s Inflation Reduction Act, which provided new resources for the IRS to improve customer service and ensure taxpayers claim the benefits and deductions for which they are eligible.
Connecticut Governor Ned Lamont and the US Secretary of the Treasury Janet L Yellen also announced that Connecticut will join the IRS Direct File beginning in the 2025 filing season.
The IRS Direct File is a newly launched option to file federal tax returns online that is provided to users at no cost, empowering residents to file with ease and without having to pay the fees associated with for-profit tax software companies.
Following a successful Pilot Program in 12 states that saw 140,000 taxpayers claim more than USD 90 million in refunds and save an estimated USD 5.6 million in filing costs using the new free online filing tool, Treasury and the IRS announced the expansion of Direct File as a permanent offering.
The Treasury and the IRS have been working with interested states to offer Direct File to their taxpayers, with Connecticut being the latest state to join, followed by Oregon, New Jersey, Pennsylvania, and New Mexico. At least 290,000 Connecticut taxpayers will be eligible to use the free online filing tool next Filing Season.