Team Maryland Celebrates the Launch of Direct File Program to Help Marylanders File Taxes Directly With the IRS for Free

ANNAPOLIS, MD - Congressman Steny H. Hoyer (MD-05) joined Governor Wes Moore, Deputy Secretary of the Treasury Wally Adeyemo, U.S. Senator Ben Cardin (D-MD), U.S. Senator Chris Van Hollen (D-MD), Congressman John Sarbanes (MD-03), Comptroller Brooke E. Lierman, and state and non-profit leaders today to announce that Maryland is participating in the Direct File program. Made possible by the Inflation Reduction Act, this program will allow an estimated 700,000 Marylanders to file their federal and state taxes for free.

Click here to watch the press conference.

"Americans want - and deserve - a free, easy, accurate, and secure option to file their taxes," said Congressman Steny H. Hoyer, Ranking Member of the Appropriations Subcommittee on Financial Services and General Government. "As House Majority Leader last Congress, I helped secure funding for Direct File in the Inflation Reduction Act to provide them that opportunity. Direct File is yet another example of Democrats' commitment to lowering costs for Marylanders and all Americans, and I am proud that Maryland will join nineteen other states in participating in the program this next tax filing season. I appreciate the IRS and our partners in the Biden-Harris Administration for making this option permanent and available for all taxpayers."

"Today, we take a big step forward to make tax season easier, simpler, and more affordable for all Marylanders," said Governor Moore. "I want to thank the Biden-Harris Administration, Code for America, and our state, federal, and community partners for their support. This program has saved Americans millions of dollars in tax filing fees, and it's going to deliver big results for the people of Maryland. Together, we will leave no one behind."

"Thanks to President Biden's Inflation Reduction Act, more than 700,000 Maryland taxpayers will be able to file their taxes online for free, directly with the IRS this coming Filing Season. Direct File will save Marylanders time and money and help ensure they receive the tax benefits they are owed," said U.S. Secretary of the Treasury Janet L. Yellen. "After a successful pilot this Filing Season, we are pleased to expand the program as a permanent offering and welcome Maryland as the latest new state to offer this free option to taxpayers."

"Tax preparation for the average working American can come with high costs and countless hours filing returns. Fulfilling tax obligations shouldn't be more difficult than the hours you spend working," said Senator Cardin, Member of the Senate Finance Committee. "Direct File was extremely successful in making tax filing more affordable and accessible. Implementing a permanent Direct File program in Maryland will help lift a significant tax burden and benefit thousands of Maryland taxpayers."

"Through the Inflation Reduction Act, we provided new resources for the IRS so it can better serve everyday Americans with initiatives like Direct File. Our state's participation in this proven program will offer hundreds of thousands of Marylanders a convenient and free way to do their taxes next year - meaning less time filling out complicated returns and more money in their pockets," said U.S. Senator Chris Van Hollen, who as Chairman of the Senate Appropriations Financial Services and General Government Subcommittee oversees funding for the Treasury Department and IRS.

"The Direct File pilot program has proven its ability to ease the burden of tax season by saving taxpayers time, effort and money when filing. I appreciate the IRS's work to expand this program across the country and am glad that starting in 2025, Marylanders will be able to use this new tool and experience a smoother, more affordable tax season," said Congressman Sarbanes.

"Partnering with the IRS to offer Direct File to eligible Maryland taxpayers in the 2025 tax season is an exciting opportunity and fundamental to our core priority of modernizing our agency to make government work better for all Marylanders," said Comptroller Lierman. "In countries across the globe, residents enjoy much simpler return-free tax systems. While our state and nation are not there yet, with Direct File and our agency's new Maryland Tax Connect system for individuals coming this term, Maryland will have the most transparent, efficient, and modern system in the nation."

"Code for America is committed to ensuring taxpayers across Maryland have access to free, easy online state tax filing," said Amanda Renteria, CEO of Code for America. "Through our FileYourStateTaxes tool, more people will be able to file a return and gain access to tax benefits that help working families. We look forward to applying the mindful use of technology to the tax filing process in Maryland and providing this revolutionary service to the state's people."

The Internal Revenue Service (IRS) launched Direct File as a pilot program in the 2023-24 tax filing season. In the twelve states that offered this pilot program, over 140,000 Americans were able to save an estimated $5.6 million in tax filing fees. In May 2024, the IRS announced that the Direct File program would be made permanently available to states. Maryland's participation in the program will allow residents with relatively straightforward returns to use Direct File to file their taxes beginning in 2025.

Maryland's Direct File program will be administrated by the Comptroller for Maryland. The Comptroller's Office is partnering with the nonprofit, Code for America, to build the platform it needs to securely transfer information from a federal tax return to a state tax return. This will enable Marylanders with relatively simple tax returns to save time on paperwork and wait times for a refund, save money on hiring a tax professional or using expensive tax preparation software, and safeguard personal information that could be at risk when filing a paper return. For more information, please visit the Comptroller for Maryland's website here.

During the 2022 federal fiscal year, more than 150 million individuals submitted federal income tax returns to the IRS electronically, which translates to 94% of filings that year. In Maryland, 2.9 million of the more than 3.1 million individual filings in Maryland, or 92%, were submitted to the Comptroller's Office electronically.

Electronic filing allows for quicker processing of returns, as well as delivery of refunds directly to taxpayers' bank accounts.

Eligibility requirement for tax year 2024 (filing year 2025) will be released in January 2025 ahead of tax season.

The Office of the Comptroller has 11 branch offices throughout the state that are open Monday through Friday, 8:30 a.m.to 4:30 p.m.

Marylanders can find and schedule appointments at their nearest taxpayer services office or schedule a virtual appointment by visiting https://www.marylandtaxes.gov/locations.php.

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