Maryland partners with IRS for free online tax filing

In a significant development for Maryland residents, a partnership between Code for America and the state has been established to facilitate free online tax filing. This initiative allows taxpayers to file both their federal and state tax returns without any cost. Maryland joins eight other states in adopting the IRS Direct File program, which aims to streamline the tax filing process by integrating state tax filing tools for eligible users. The program is part of a pilot initiative launched in 2024, where eligible taxpayers in twelve states can file their federal returns directly with the IRS at no charge. Previous partnerships with Arizona and New York have shown high satisfaction rates among users, with 96% expressing contentment with the service. This reflects a growing trend towards simplifying tax filing through direct government services. The collaboration not only enhances convenience for taxpayers but also ensures that their data remains secure, as no third-party advertisers will have access to personal information. The IRS has emphasized that the data used for tax preparation is primarily the taxpayer's own, which adds a layer of trust to the process. Looking ahead, the IRS has announced plans to make this program permanent, expanding its availability to all 50 states and the District of Columbia by the 2025 filing season. This move is expected to further improve taxpayer experiences and could lead to a nationwide standard for free tax filing services.