Department of Administrative and Financial Services Announces State of Maine to Join IRS Direct File for 2025 Tax Season

August 27, 2024

IRS' new tool, Direct File, to be fully integrated into the Maine Tax Portal in 2026

AUGUSTA, Maine - The Department of Administrative and Financial Services (DAFS) announced today that the State of Maine will join IRS Direct File.

Direct File will provide Federal income taxpayers with a simple, convenient, and fast system for filing their federal taxes that will spare certain Maine taxpayers tax preparation filing fees and help them claim the valuable federal tax credits they are eligible for. IRS Direct File was made possible through 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.

Maine Revenue Services (MRS), a bureau of DAFS, will make Direct File available to Maine taxpayers this next filing season to file their federal income taxes and will work with the IRS to fully integrate Direct File and the Maine Tax Portal for future filing seasons, with a goal of completion in 2026.

According to the IRS, Direct File is expected to benefit at least 120,000 Maine taxpayers.

"Thanks to President Biden's Inflation Reduction Act, more than 120,000 Maine taxpayers will be able to file their taxes online for free, directly with the IRS this coming Filing Season. Direct File will save Mainers 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 Maine as the latest new state to offer this free option to taxpayers."

"Thanks to our new partnership with the Federal government, beginning next January, Maine people will have the ability to file their federal taxes online for free, building on our longstanding success in allowing Maine people to file their state taxes online for free," said Governor Janet Mills. "This new IRS Direct File tool will streamline the process of filing taxes and save Maine people valuable time and money. I thank President Biden and Vice President Harris for the Inflation Reduction Act, which made this exciting new service possible."

"The State of Maine has made it possible to file State income taxes directly online and free of cost since 2001," said Kirsten Figueroa, Commissioner for the Department of Administrative and Financial Services. "This past filing season, MRS's new Maine Tax Portal replaced iFile with our updated system. Adding IRS Direct File to our established online tax filing system will provide a convenient, one-stop, no-cost tax filing solution for many Maine taxpayers."

Direct File builds on the successful work the State of Maine has taken under the Mills Administration to simplify the tax filing experience for Maine people. This past filing season, MRS introduced the Maine Tax Portal for individuals to easily and conveniently file, pay and manage their Maine state income taxes.

For the upcoming tax season starting in January of 2025, an IRS Direct File link will be made available on the MRS website. Those who use Direct File to file their federal taxes will need to file their state income tax return separately - easily accomplished through the Maine Tax Portal. MRS will then work with the IRS to fully integrate Direct File and the Maine Tax Portal for future filing seasons, with a goal of completion in 2026. This will enable taxpayers to have their information automatically transferred from their completed federal return to begin their Maine return.

Following a successful Pilot Program in 12 states that saw 140,000 taxpayers claim more than $90 million in refunds and save an estimated $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. Treasury and the IRS have been working with interested states to offer Direct File to their taxpayers with Maine becoming the latest state to join, following Oregon, New Jersey, Pennsylvania, New Mexico, Connecticut, and North Carolina.

###