Quick reference — standard deduction (2025 & 2026)
Standard deduction — increased and made permanent under §70102 of the One Big Beautiful Bill Act (P.L. 119-21, 2025), which amended §63(c)(7) so the temporary TCJA-era amounts continue indefinitely with annual inflation adjustments.
| Filing status | 2025 (return filed in 2026) | 2026 (current calendar year) |
|---|---|---|
| Single / MFS | $15,750 | $16,100 |
| Married filing jointly / QSS | $31,500 | $32,200 |
| Head of household | $23,625 | $24,150 |
Sources: IRS Rev. Proc. 2025-32 §4.14 (2026, PDF) · IRS — OBBBA provisions (2025 amounts). Verified July 2026.
Quick reference — Child Tax Credit (2025 & 2026)
Child Tax Credit — 2025 and 2026 (unchanged year-over-year):
- Maximum credit: $2,200 per qualifying child (under age 17)
- Refundable portion (Additional CTC): up to $1,700 per qualifying child
- Phase-out begins at $200,000 (single) / $400,000 (married filing jointly)
Sources: IRS — Child Tax Credit · Rev. Proc. 2025-32 §4.05 (2026 — same $2,200 max / $1,700 refundable). Verified May 2026.
The IRS Direct File Project was an initiative by the Internal Revenue Service (IRS) that let taxpayers in participating states e-file their federal tax return for free directly through the IRS. The program was piloted in 2024, expanded in 2025, and then discontinued — it was not available for the 2026 filing season.
In today’s article, I’ll explain what the project was, how the pilot worked, and where to find free filing options now.
What is the IRS Direct File Project Pilot?
The IRS Direct File Project Pilot was designed to test how the IRS could provide taxpayers with a new, free option to electronically file their federal tax return directly through an IRS website. Basically, the overall idea of the whole project was to make filing your taxes faster, easier, and more convenient. After the 2024 pilot, the IRS expanded Direct File to 25 states for the 2025 filing season, but the agency then shut the program down, and it was not available for the 2026 filing season. If you’re looking for a no-cost way to file, the IRS still offers IRS Free File and other free filing options.
Who could participate in the IRS Direct File Project Pilot?
During the 2024 pilot year, tax filers in 13 states were eligible to participate. Eligibility depended not only on whether you lived in one of those states but also on what types of income, credits, and deductions you had. Filers with a “simple return” were the most likely to qualify. For the 2025 filing season, the program grew to 25 states before it was discontinued.
The original 13 pilot states in 2024 were:
- Alaska
- Arizona
- California
- Florida
- Massachusetts
- Nevada
- New Hampshire
- New York
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Additionally, the Direct File Project Pilot only worked for taxpayers who were filing individual federal tax returns, and it did not apply to state returns. A “typical” return generally qualified, and the pilot allowed you to:
- Report W-2 income
- Report Social Security and railroad retirement income
- Report unemployment compensation
- Report interest of $1,500 or less
- Claim the Earned Income Tax Credit
- Claim the Child Tax Credit
- Claim the Credit for Other Dependents
- Take the standard deduction
- Deduct student loan interest
- Deduct educator expenses
Why did the IRS conduct a Direct File Project Pilot?
In 2022, the Inflation Reduction Act created funding for the IRS to improve its services and technology. At that time, the IRS was also tasked with researching the feasibility of providing a free, electronic filing program.
To accomplish this, the IRS allowed a group of taxpayers to participate in the Direct File Project Pilot beginning in 2024 and expanded the program to 25 states in 2025. After evaluating the program, the IRS ultimately decided to end Direct File rather than continue it for the 2026 filing season.
What benefits did the Direct File pilot test?
Some important features piloted in this program were:
1. A Simplified Filing Process
The IRS Direct File Project was meant to simplify tax forms and make it easier for taxpayers to file tax returns. Participants saw simple instructions and easy-to-follow directions when using the IRS site.
2. Technology and Tax Support
In addition to the online tools, the IRS provided customer service support to assist with any questions taxpayers had while entering information and filing a return. This included both technical support and some customer service support in answering tax questions.
3. Faster Refunds
Another benefit to participating in the Direct File Project was a faster refund process, since returns e-filed directly with the IRS were generally processed more quickly than returns filed through other methods.
4. A User-Friendly Mobile App
The program also let taxpayers file their taxes right on their phone or iPad. For those who are comfortable completing all sorts of tasks on their phone, this was a big draw.
What do tax professionals think about the IRS Direct File Project Pilot?
I was sorry to see this project end. I applaud any effort by the IRS to make the tax process easier, more accessible, and less intimidating for taxpayers, and Direct File was a real step in that direction while it lasted.
Now that Direct File is gone, your best no-cost options are IRS Free File and the other free filing tools on the IRS website. And if you don’t feel like you’re getting the answers you need from free filing tools, consider reaching out to a CPA who can ensure you’re making the right tax decisions.
