Business and Economy

Maine to opt into new federal Direct File tax return system

Maine Public | By Robbie Feinberg

Published August 9, 2024 at 1:48 PM EDT

FILE - The Internal Revenue Service 1040 tax form for 2022 is seen on April 17, 2023. The IRS said Friday, April 26, 2024, more than 140,000 taxpayers filed their taxes through its new direct file pilot program. It says the program's users claimed more than $90 million in refunds, saving roughly $5.6 million in fees they would have spent with commercial tax preparation companies. (AP Photo/Jon Elswick, File)

The state of Maine says that it plans to opt into the new federal Direct File tax return system.

The U.S. Treasury Department piloted the Direct File tool in 12 states earlier this year, allowing people to file their taxes directly with the IRS. The department has since announced plans to expand Direct File and make it permanent.

On Friday, a spokesperson for the Maine Department of Administrative & Financial Services said that Maine intends to opt in to the system, and Maine taxpayers will be able to file their federal tax returns using the tool during the 2025 filing season.

The agency says that the system is currently limited to "certain taxpayers with the most common tax situations," and Mainers will still need to file a state income tax return separately.

The state plans to work with the IRS to integrate Direct File with Maine's online tax portal by 2026.

An agency spokesperson says Direct File will help to spare residents the costs of tax preparation filing fees, and help them claim federal tax credits.