Mainers to Access Free Federal Tax Filing via Direct File in 2025
New Integration to Streamline State and Federal Tax Returns by 2026
According to Maine Morning Star, starting with the 2025 tax season Mainers will be able to file their federal taxes online for free through the new Direct File system. This system funded by the Inflation Reduction Act will allow residents to file without paying for tax preparation services. Although Maine was not part of the initial pilot program for Direct File state officials have confirmed that Maine will join once the system is available in all states and Washington D.C. Direct File is intended for taxpayers with straightforward tax situations and will help Mainers claim any federal tax credits they are eligible for without additional cost.
Even with the new free federal filing option Mainers will still need to handle their state tax returns separately. Maine Revenue Services has long offered free online filing for state income taxes a service available since 2001. Recently the state upgraded its tax portal to improve the filing process. Plans are in place to integrate this new portal with the Direct File system by 2026 which will allow federal tax information to be automatically transferred to state returns. This change is expected to make the filing process more efficient and user-friendly for residents.
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79.9 Million Reasons to Celebrate: Maine Taxpayers to Enjoy Free Online Federal Filing Through Direct File System!(PHOTO: The Hill)
Direct File Expected to Save Maine Taxpayers $79.9 Million and Enhance Tax Fairness
The rollout of Direct File is anticipated to save Maine taxpayers approximately $79.9 million in filing fees time spent on tax preparation and unclaimed federal credits according to the Economic Security Project. During its pilot phase Direct File successfully issued over $90 million in refunds and saved users $5.6 million in preparation costs. Maura Pillsbury from the Maine Center on Economic Policy praised the initiative noting its potential to improve tax fairness and benefit vulnerable communities. She stressed that Direct File will complement not replace professional tax services.
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