WASHINGTON—U.S. Representative Melanie Stansbury (NM-01) celebrated a new free tax filing option coming to New Mexico for the 2025 filing season thanks to the President Biden’s Inflation Reduction Act. “Creating a way for New Mexicans to file their taxes directly with the IRS and online for free is a huge step in saving money and easing the stress of tax season for people in my district,” said Representative Melanie Stansbury (NM-01). “We're seeing positive, real-world impacts on the working class in our state every day all thanks to the Biden-Harris Administration and the Inflation Reduction Act.” More than 200,000 New Mexicans are eligible for the free online filing tool in the 2025 filing season. A pilot program was conducted across 12 states and saw 140,000 taxpayers claim more than $90 million in refunds and save an estimated $5.6 million in filing costs by using the new free online filing tool. Background on the pilot program provided by the Department of Treasury The average American spends $270 and 13 hours filing their taxes. (Taxpayer Burden Survey) President Biden’s Inflation Reduction Act required the IRS to study the potential for an IRS-run Direct e-File System that would allow taxpayers to file taxes for free, directly with the IRS. After reviewing the report, which showed strong taxpayer interest in a free IRS filing option, the Treasury Department initiated a pilot of IRS Direct File during the 2024 Filing Season. In Filing Season 2024, Direct File was available to taxpayers with simple tax situations in 12 states. The Pilot exceeded expectations with more than 140,000 Americans successfully filing in the five weeks the program was widely available following extensive product testing. These filers claimed more than $90 million in refunds and saved an estimated $5.6 million in tax preparation fees on their federal returns alone. Direct File users also reported a high degree of satisfaction and quick answers to their filing questions. In a GSA Touchpoints survey of more than 11,000 Direct File users, 90 percent of respondents ranked their experience with Direct File as “Excellent” or “Above Average.” Among survey respondents, 47 percent of users paid to file their taxes last year and 16 percent did not file last year at all. In Treasury and IRS engagements with Direct File users, taxpayers relayed that Direct File was straightforward to use, and they valued features that allowed them to learn more about different tax situations, credits, and deductions. Taxpayers emphasized their appreciation for the fact that Direct File is always free and there are no hidden fees or attempts to upsell users as they moved through the filing process. Taxpayers also shared that filing directly with the IRS gave them confidence and that they were able to quickly fix mistakes and get their taxes filed accurately. ### |