Arizona Expands Free Tax Filing Program for 2025
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Arizona Expands Free Tax Filing Program for 2025

More Arizonans now eligible to file federal and state taxes online for free through the expanded IRS Direct File program.

PHOENIX — The Arizona Department of Revenue (ADOR) has expanded its free tax filing program, offering a broader range of Arizonans the opportunity to file their taxes online at no cost.

An estimated 1.7 million Arizona taxpayers will qualify for the enhanced IRS Direct File program. Initially launched as a pilot for the 2024 tax season, the program now accommodates additional income types, deductions, and credits. IRS Direct File will be available starting on January 27, the first day of the 2025 tax season, with the filing deadline set for April 15.

How the Program Works

Eligible taxpayers can calculate and file both federal and state taxes without using paid third-party tax preparation services. The program is accessible in English and Spanish, includes a mobile-friendly version, and offers customer support for users.

During the federal tax filing process, users will answer a series of questions similar to those in commercial tax software. Upon completion, they will be redirected to Arizona’s FileYourStateTaxes platform to file their state return. Prepopulated data will streamline the process, making state filing faster and more efficient.

Eligibility Requirements

To use the IRS Direct File program in Arizona for 2025, taxpayers must meet specific criteria, including:

  • Residency in Arizona for all of 2024 with no out-of-state income.
  • Using the same filing status for both federal and state returns.
  • Income limited to certain sources, such as wages, unemployment compensation, Social Security benefits, and qualified Health Savings Account distributions.
  • Wage thresholds of $200,000 or less for single filers and $250,000 for married couples filing jointly.

A complete list of eligibility requirements is available online.

Benefits of Direct File

The program eliminates the need for third-party tax preparation fees, making filing more accessible and affordable. “This expansion ensures even more Arizonans have access to free, reliable tax filing services,” ADOR said in a statement.

Taxpayers can take advantage of this program to simplify their filing process while saving money and time. Additional details and eligibility requirements are available on the IRS and Arizona Department of Revenue websites.