Maryland joins IRS Direct File program for online tax filing

Maryland has announced its participation in the IRS's Direct File program, a new initiative aimed at simplifying the tax filing process for eligible residents. This program allows taxpayers to prepare and file their tax returns online for free. Although the specific eligibility criteria for the upcoming tax season have yet to be finalized, it is estimated that around 700,000 residents may qualify for this service. The IRS previously tested the Direct File system during the 2024 tax season in 12 states, focusing on individuals with straightforward W-2 forms. Following the successful trial, the IRS decided to make the program permanent and is collaborating with all states and the District of Columbia to facilitate tax filing through this platform by 2025. To enhance the efficiency of the tax filing process, Maryland's comptroller's office is working with the nonprofit organization Code for America. This partnership aims to develop a secure platform that will allow for the seamless transfer of information from federal tax returns to state tax returns. This innovation is expected to significantly reduce the paperwork burden for residents with simple tax situations. As a result of this initiative, Maryland residents will likely experience a more streamlined tax filing process, enabling them to save time and receive their refunds more quickly. The introduction of the Direct File program represents a significant step towards modernizing tax filing and making it more accessible for taxpayers in the state.