In 2025, Maryland residents will have a new option for filing their taxes, as a partnership between Code for America and the state of Maryland will allow taxpayers to file their federal and state tax returns online for free. Maryland is the ninth state to join the IRS Direct File program, following Connecticut, Maine, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin. The Direct File program allows eligible taxpayers to file taxes directly with the IRS, and now Maryland taxpayers can also file their state returns for free using FileYourStateTaxes, a civic tech nonprofit organization’s integrated state tax filing tool.
Comptroller Brooke E. Lierman expressed enthusiasm for the partnership, stating that the initiative is part of Maryland’s efforts to modernize its agency and provide a more efficient and transparent tax system for its residents. With Direct File and the new Maryland Tax Connect system for individuals, Maryland aims to have the most modern tax system in the nation. The partnership with Code for America will also make free online filing available for Maryland taxpayers in the upcoming filing season, making it the second new state to offer this service after North Carolina.
The Direct File pilot program, which was launched in 2024, allowed eligible taxpayers in 12 states to file their federal tax returns for free directly with the IRS. The program was deemed a success, with hundreds of thousands of taxpayers signing up for Direct File accounts and a majority expressing satisfaction with the service. The key to the program’s success lies in federal-to-state data transfer, allowing taxpayers to seamlessly transfer their federal return information to file their state returns without starting from scratch.
While concerns have been raised about the program, particularly regarding errors and security, Code for America assures that industry-standard best practices are being used to protect taxpayers’ data. The program aims to prioritize taxpayers’ needs and provide a seamless and efficient filing experience. The program is driven by the Inflation Reduction Act, which tasked the IRS with developing a free direct e-file tax return system. The success of the pilot program led to the program being made permanent and available to all 50 states and the District of Columbia for the 2025 filing season.
Code for America is a civic tech nonprofit that works with governments and community leaders to build equitable digital tools and services. In addition to the Direct File program, Code for America has previously worked on projects like GetCTC.org to help families claim the expanded child tax credit and GetYourRefund.org, a service offered in partnership with Volunteer Income Tax Assistance (VITA) organizations. With the expansion of the Direct File program and the success of previous initiatives, Code for America aims to continue working towards making government services more accessible and efficient for all.
