The Comptroller’s Office is pleased to announce Maryland’s participation in Direct File beginning in the 2024 Tax Season. Direct File is the IRS’s new free online filing system that will streamline federal and state tax filings for Marylanders. This partnership offers an incredible opportunity for many Marylanders, particularly low to moderate income taxpayers, to file their taxes quickly, securely, and for free, starting in January 2025.
What is Direct File?
Direct File is the new free service allowing eligible taxpayers to prepare and electronically file their tax return online directly with the IRS. There are no hidden fees or additional charges to complete a simple return.
Direct File was established in response to a provision in the Inflation Reduction Act requiring the IRS to explore the feasibility of a public online filing service. This eliminates the middlemen and the expense of tax preparation, particularly for low and moderate-income Marylanders.
Who can use Direct File?
Tax year 2024 (due in 2025) eligibility requirements have not yet been finalized by the IRS, but eligible Maryland state residents will likely be able to use Direct File for their state tax filing if:
- They filed their federal return using Direct File.
- They are a full year Maryland resident.
- They use standard deduction.
- They want to claim common credits (state and local earned income tax credit, state and local poverty level credit, and the child and dependent care credit).
- Their income came primarily from W-2 employment.
- They want to claim common subtractions (Pension exclusions, child & dependent care expenses, military retirement exclusion).
Direct File offers a screener tool to assist taxpayers in determining if they meet eligibility requirements prior to filing.
Tax filers with an Individual Taxpayer Identification Number (ITIN) who have previously filed taxes can participate. Tax filers with a Social Security Number (SSN) can apply regardless of previously filing taxes.
Frequently Asked Questions
- When will I know I am eligible to use Direct File?
Tax Year 2024 eligibility requirements have not yet been finalized by the IRS. The Office of the Comptroller will share this information to Maryland taxpayers once it becomes available. - How many Marylanders will be eligible?
The Department of Treasury estimates approximately 700,000 Maryland taxpayers may meet the eligibility requirements to use Direct File. - When will Direct File open for the 2025 filing season?
In conjunction with the IRS tax filing season start date, which is currently estimated to be late January 2025.