Wisconsin taxpayers have a new option for filing their 2025 tax returns: IRS Direct File, a free online system that allows residents to submit their federal taxes directly to the Internal Revenue Service (IRS) without using third-party tax software. Wisconsin is one of 25 states participating in the program, which aims to simplify tax filing for millions of Americans.
A Simpler, Free Filing Option
State officials are touting the new system as an easy, secure, and cost-free alternative to commercial tax software. David Casey, secretary of the Wisconsin Department of Revenue, emphasized the benefits of the program.
“It’s making what is often a complex or scary process for a lot of Wisconsinites easy,” Casey said. “Easy, secure, free.”
The state-run filing software, WisTax, integrates with IRS Direct File, allowing users to seamlessly complete both federal and state tax returns.
Jennifer Bacon, communications director for the department, explained how the process works.
“There’s a prompt that’ll ask you, ‘Would you like to file your state taxes?’” Bacon said. “And you just click a button, and because you’ve already entered Wisconsin information, it will automatically take you to WisTax.”
The system also identifies tax credits taxpayers qualify for, helping them maximize refunds.
“That’s really important because too often when people file returns, they don’t know what they’re eligible for, so they may miss something,” Casey added.
For example, in 2021, 20% of eligible Wisconsinites did not claim the Earned Income Tax Credit (EITC), a tax break designed to assist low-to-moderate-income workers.
Who Can Use IRS Direct File?
While Direct File is available to many residents, some taxpayers are not eligible for the program. Those who earn over $200,000 annually or claim itemized deductions must use traditional filing methods. Eligible filers can verify their status at directfile.irs.gov.
Industry Opposition to Free Filing
Not everyone is welcoming the expansion of IRS Direct File. Major tax preparation companies, including TurboTax and its parent company Intuit, have historically opposed government-run filing systems.
A 2019 ProPublica investigation revealed that Intuit spent years lobbying Congress to block the creation of a free, direct tax filing service, fearing it would undercut its business model.
When the IRS announced in June 2024 that Direct File would become permanent in several states, Intuit’s stock price dropped sharply. The company’s shares took another hit in November, following reports that Elon Musk was exploring a competing tax filing app under his proposed Department of Government Efficiency (DOGE).
Positive Reception in Wisconsin
Despite industry pushback, state officials report that Wisconsinites have embraced Direct File.
“We have received quite a few WisTax returns through Direct File, and they have been seamless,” Bacon said. “And we’re hearing from people that it’s really easy to use. Really user-friendly.”
With tax season now underway, Wisconsin residents can take advantage of the free filing system, ensuring a smooth and cost-effective tax return process.