Did you know Washington has a new, quick, easy, and free online tax filing tool? It’s called IRS Direct File.  This is a big deal for 920,000 Washington households, who no longer have to dip into their savings to pay a private corporation to file their taxes and can instead file for free directly with the IRS. Twenty-five states, including Washington, have opted into Direct File this year. Direct File is available to people who make under $200,000 a year and have relatively simple taxes.

What is Direct File?

Direct File is an intuitive, interview-based tax preparation software that guides you step-by-step through the filing process. It is available in English and Spanish. Direct File is designed with a mobile-first approach and provides a seamless user experience for both phone and desktop users. Filing taxes with Direct File is free and generally takes users less than an hour, compared to the average individual taxpayer who spends $270 and 13 hours filing their taxes.

Tax time can be a springboard to financial security – if people claim the cash owed to them

Our tax system delivers economic boosts for our communities, including up to $1.2 billion in cash directly into lower-income families’ pockets through the federal Earned Income Tax Credit (EITC), federal Child Tax Credit (CTC), and our state Working Families Tax Credit (WFTC). Last year, just under one in six kids in Washington benefited from the WFTC.¹ Beyond reducing poverty, tax credits also have other, far-reaching benefits, including improving educational outcomes for kids and maternal health outcomes. Additionally, the EITC, CTC, and the WFTC disproportionately benefit women led households and people of color, increasing racial and gender equity in our tax code. Research has shown that for every $1 put back into working people’s pockets through tax credits, $2 or more is returned to our economy in local spending. Last year, the WFTC infused over $134 million into local communities. That averages to $750 for every household that claimed the credit.²

Unfortunately, many people miss out on claiming their cash, partly because filing taxes can be complicated and expensive, which puts up barriers for the lowest-income households who stand to gain the most from claiming their tax credits. This isn’t an accident – for example, one big corporation has spent decades lobbying for a stronghold over a “free” tax filing system, which they purposely make difficult to access. Only  4% of eligible tax filers are actually able to file their taxes for free due to roadblocks put up by the big corporations dominating the tax preparation market. In 2022, Washington’s attorney general sued TurboTax for their deceptive practices – and won.

A better tax filing system means more people claim their cash

In Washington, more than one in five eligible households didn’t receive their EITC, and last year, just over half of eligible households claimed the WFTC. The average boost from the EITC and the WFTC is just under $3,000, so that’s a big benefit that people are missing out on.

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Research has shown that free tax prep services, provided through the Volunteer Income Tax Assistance (VITA) program, are significantly more accurate than paid tax preparers. Private tax preparers are more likely than free tax prep services to make errors that cause families to miss out on the tax credits they are owed. Research in California showed that using private preparers was more likely to result in errors and unclaimed credits. This means families are missing out on cash that could cover school supplies, pay for groceries, or be the difference between making rent or facing eviction.

While free tax prep services like VITA are essential, they are limited in reach, nationally serving only a couple million taxpayers every year. Direct File is a reliable, free self-help option for people who may not live close to a VITA site or have simple enough taxes that they don’t need assistance. As a result, Direct File can free up VITA providers to spend more time helping the people who need the service the most.

Direct File could deliver $552 million in total value to Washington taxpayers, between filing fees, time cost of filing, and additional federal and state tax credits claimed

Direct File could save Washingtonians about $257 million in tax filing fees and time costs. Additionally, by making it easy and free to file your taxes, Direct File can increase uptake of federal tax credits like the EITC and CTC, putting $192 million in federal tax credits into people’s pockets, and an estimated additional $103 million from Washington’s WFTC.²

While Direct File will remain operational this year, the uncertainty of federal priorities for IRS funding means it’s future is uncertain. IRS Direct File is a big win for working people and families, and the best way to ensure it is a permanent option is to use it. The more people who file their taxes quickly, safely, and for free using Direct File, the more likely it will be here to stay.

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Frequently asked questions about Direct File

• How long will filing taxes with Direct File take?
  • In most cases, Direct File takes less than an hour, and many people reported filing in as little as 30 minutes.
  • If you can’t finish everything at once, you can save your progress and finish your return later.
• What if I need help?
  • When you use Direct File, you can access dedicated live chat support from IRS staff in English and Spanish. If needed, you can switch to a phone call with a representative for additional support.
• What if I want in-person help or have a more complicated tax situation?
  • File your taxes at a Volunteer Income Tax Assistance (VITA) site! Find a VITA site at myfreetaxeswa.org. In King County, people who file their taxes with an Individual Taxpayer Identification Number (ITIN) can apply for or renew their ITIN for free at select United Way of King County Free Tax Prep sites.

Don’t forget to claim your Working Families Tax Credit

Last year, just over half of eligible households claimed their Working Families Tax Credit. To claim their WFTC, tax filers can use one of the online tax filing softwares that integrates the WFTC application with the federal tax return (such as MyFreeTaxes.com or GetYourRefund.org). Alternatively, they can use Direct File to file their federal taxes and then proceed to www.WorkingFamiliesCredit.wa.gov to apply for their Working Families Tax Credit directly with the Department of Revenue.

References

1. Based on estimates from the Dept of Revenue, 2025. In 2024, 258,700 children lived in households that received the Working Families Tax Credit.
2. Estimates from the Washington State Dept of Revenue, 2025.
3. Estimates from the Washington State Dept of Revenue, 2025. In 2024, an estimated $129,070,272 in Working Families Tax Credits went unclaimed. The impact of Direct File is estimated at 80% increased uptake, based on Economic Security Project analysis. See: Full Report: The Impact of Direct File by the Numbers