My Experience Using IRS Direct File For Federal Taxes Only - What Happened?

Wait really? I had no idea it was designed that way - I must have completely missed that info. So everyone using Direct File has to file state taxes separately? That seems really inefficient. Do you know which states have their own free filing options? I'm in Colorado if that helps.

Yes, everyone using Direct File currently needs to handle state taxes separately - this is the first year of the program so it's still limited in scope. The IRS is focusing on getting the federal side working well before potentially expanding. Colorado actually does have a free filing option called "Revenue Online" through the Colorado Department of Revenue. You could have used that instead of paying for TurboTax. For 2025 taxes, just go to Colorado's tax website and look for their free filing portal. Most states have something similar, though the specifics vary by state.

Does this taxr.ai thing actually check if you made mistakes on your federal return before you file your state taxes? I already submitted my federal through Direct File but I'm worried I might have screwed something up.

I'm a little skeptical about using yet another tax service. How exactly does it work with Direct File? Does it just give you info or does it actually help you file the state return too?

It does check for potential issues on your federal return before you proceed with state filing. The system reviews your Direct File confirmation and can spot common errors or inconsistencies that might cause problems later. This is super helpful because it can identify issues before they turn into bigger problems with your state return. The service doesn't actually file your state taxes for you - it analyzes your situation and points you to the right resources for your specific state. In my case, it found my state's free filing portal and guided me through what information I'd need to transfer over from my federal return. It was like having a tax expert walk me through the process without having to pay for one.

How does this service even work? I don't get it. Are they somehow magically letting you cut the line for IRS phone support? Sounds sketchy.

Yeah right, no way this actually works. I've tried calling the IRS like 10 times this month and never get through. If this really worked everyone would be using it. Sounds like you're just promoting something.

It's actually not about cutting the line - the service uses an automated system to dial repeatedly and hold your place in the queue. Basically it does the waiting for you and then calls you when it reaches an actual IRS agent. It's completely legitimate and works with the IRS's existing phone system. I was skeptical too before trying it. The way it works is they use technology to handle the tedious redial and wait process that most of us don't have time for. The IRS is severely understaffed, so their phone lines are always jammed. This service just handles the frustrating part of getting through the initial queue.

Do we know which states will be included when they eventually expand? I'm in Texas so we don't have state income tax anyway, but curious about the rollout plans.

The IRS hasn't announced specific states that will be included in future Direct File expansions. The rollout will likely depend on which states are willing to partner with the federal system, so it will vary. For Texas residents like yourself, you're actually in a good position since you don't have state income tax to worry about. Direct File is already a complete solution for you. The taxpayers who have to deal with this two-step process are those in the 41 states plus DC that have income tax filing requirements.

Thanks for the tip! I wish I'd known this before paying for TurboTax. Will definitely check Colorado's website for next year. Did you have to re-enter all your information or was there a way to import data from your federal return?