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  • Writer's pictureVik F.

Free Direct File Coming Your Way in 2025

Exciting news is on the horizon for our Dragon Brand Ambassadors and gig workers everywhere! The IRS, along with the U.S. Department of the Treasury, has announced the nationwide expansion of the Direct File program in 2025. This free tax filing service is set to revolutionize the way you file your taxes, making it easier and more affordable. Here’s what you need to know about this game-changing development and how it will impact your work as a brand ambassador.

The Direct File program was piloted in 12 states during the 2024 tax season, with over 140,000 users taking advantage of the free service. This pilot was a resounding success, saving taxpayers an estimated $5.6 million in tax preparation fees. The states involved in the pilot were Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Direct File is a free tax filing service provided by the IRS. It allows taxpayers to file their federal tax returns without the need for third-party tax software or paid preparers. Initially, the pilot focused on simple tax situations, such as those with Form W-2 wages, Social Security retirement income, unemployment earnings, and interest of $1,500 or less. However, it excluded those with contract income (Form 1099-NEC), gig economy workers, and self-employed filers.

For many of our brand ambassadors, this pilot might have seemed limited. But fear not—things are about to get a lot better!

Starting in 2025, the Direct File program will be available to taxpayers across all 50 states. IRS Commissioner Danny Werfel has announced that the agency aims to expand the scope of Direct File to cover more common tax situations, especially those affecting working families. This means that our gig workers, including those with contract income and self-employment earnings, will likely be able to use this free service in the near future.

What Does This Mean for You?

Cost Savings: The most immediate benefit is the cost savings. With Direct File, you won’t need to pay for tax software or professional preparation services, keeping more of your hard-earned money in your pocket.

Ease of Use: Direct File is designed to be user-friendly, making it simpler to navigate your tax filing. This is especially beneficial for those who may not be familiar with complex tax software.

Expanded Eligibility: As the IRS works to include more tax situations, our brand ambassadors who earn income through gigs, freelance work, and other non-traditional employment will find it easier to file their taxes accurately and on time.

Support for Working Families: By focusing on tax situations that impact working families, Direct File aims to provide the necessary tools and resources to ensure that you can file your taxes with confidence.

IRS Commissioner Danny Werfel has assured that the agency will share more details about the expanded scope of Direct File and which states will join the program later this year. This gradual expansion aims to support a broader range of tax scenarios, making it an invaluable tool for our Dragon Brand Ambassadors.

While Direct File will be an additional option and not a replacement for other services, it’s a significant step forward in making tax filing more accessible and affordable for everyone, especially our gig workers.

We’ll keep you updated with the latest information on Direct File and other relevant news that impacts your work as a Dragon Brand Ambassador. This development is just one of the many ways we’re committed to supporting you in your journey. Stay tuned for more updates, and here’s to a brighter, more financially empowered future!

Remember, you’re not alone in this. The Dragon community is here to support you every step of the way. If you have any questions or need assistance, don’t hesitate to reach out. Happy filing!

Disclaimer: We are not tax professionals. This information is intended to provide a general understanding of the upcoming Direct File program and should not be considered as professional tax advice. Please consult a tax professional for specific guidance related to your individual tax situation.



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