Maryland Partners with IRS to Simplify Tax Filing, Save Residents Millions in Fees

Maryland Comptroller Brooke E. Lierman announced the state’s participation in the federal Direct File program, which will allow 700,000 Marylanders to file both state and federal tax returns online for free. The program will begin in the 2025 tax season and aims to streamline the filing process.

Governor Wes Moore, U.S. Senators Ben Cardin and Chris Van Hollen, U.S. Representatives Steny Hoyer and John Sarbanes, and Deputy Secretary of the Treasury Wally Adeyemo joined Lierman. The Direct File program, part of the Biden administration’s push to simplify tax filing, will reduce costs and improve efficiency for Maryland taxpayers.

“This partnership with the IRS is crucial for modernizing government services,” said Lierman. “With the new Maryland Tax Connect system, our state will have one of the most efficient systems nationwide.”

Maryland’s participation comes after the IRS permanently adopted Direct File following a successful 2024 pilot program in 12 states. It allows residents with simpler tax returns to file without using expensive third-party software. The program will save millions in tax filing fees and speed up refund processing.

Moore praised the move saying, “This program will make tax season easier and more affordable for everyone. Thanks to our federal partners, Marylanders will save both time and money.”

Direct File was introduced through the Inflation Reduction Act to help the IRS create a public online filing system. In 2023, 94% of Marylanders filed electronically, and officials expect this new program to further boost efficiency.

Officials will announce eligibility for the program in January 2025 ahead of the upcoming tax season.

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