ANNAPOLIS, MD—The state of Maryland has announced plans to implement the Internal Revenue Service’s (IRS) Direct File online tool to simplify tax season and make tax preparation more affordable for residents.

The new service, which is available to more than 700,000 Maryland taxpayers, is expected to save the state’s taxpayers approximately $5.6 million in tax preparation fees on federal returns, according to a press release.

The Direct File system will enable taxpayers to prepare and file their taxes electronically and free of charge. The tool is currently available in 12 states, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming.

“Today, we take a big step forward to make tax season easier, simpler, and more affordable for all Marylanders,” said Governor Wes Moore. “I want to thank the Biden-Harris Administration for their support. Maryland doesn’t just talk about partnership, we move in partnership — and this latest win shows what’s possible when the state, federal government, and community partners work together.”

“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.”

The Maryland government has partnered with Code for America, a civic technology company, in order to deliver the new service.

“Code for America is committed to ensuring Maryland residents have access to free, easy online state tax filing,” said Amanda Renteria, Chief Executive Officer 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.”

For more information about the IRS Direct File tool, visit the U.S. Department of Treasury webpage.

This article was written with the assistance of AI and reviewed by a human editor.

Photo via Pixabay