Why isn't IRS Direct File available for all states? Virginia excluded?

So I'm pretty confused about this IRS Direct File thing I keep hearing about. I live in Virginia and I was hoping to use it this year, but apparently it's not available here? Can someone explain why it's only for certain states? I'm also wondering how the whole system works. Like if I direct file with the IRS, will my information automatically transfer to my Virginia state tax return somehow? That would be super convenient if it did. Also, does anyone know which tax filing companies are actually partnered with the IRS? I swear I used to see a list of official IRS partners on their website, but I can't find it anymore. I think I remember FreeTaxUSA being an official partner while TurboTax wasn't? Would be great to get some clarity on all this before tax season!

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18 comments

Zainab Ahmed

•8M

The IRS Direct File program is currently in a pilot phase, which is why it's only available in certain states. Virginia unfortunately isn't included in the initial rollout. For 2025 filing season, Direct File is only available to taxpayers in 12 states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming. As for how it works - it's a free filing option directly through the IRS website for people with relatively simple tax situations. The catch is that it doesn't automatically transfer data to your state return. You'd still need to file your Virginia state return separately using another method. Regarding IRS partners, you might be thinking of the Free File Alliance partners. These are tax preparation companies that partner with the IRS to offer free filing options to taxpayers under certain income thresholds. You can find the current list by searching "IRS Free File" on the IRS.gov website. FreeTaxUSA is indeed one of those partners, while TurboTax left the program a few years ago.

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Zainab Ahmed

•8M

The 12 states were selected based on a few factors. Some states (like Florida, Nevada, etc.) don't have state income tax, making them easier to include. Other states were chosen because they either partnered directly with the IRS for the pilot or their tax systems were more compatible with the initial rollout. The IRS plans to expand Direct File to more states in future years, so Virginia could certainly be added for the 2026 filing season or beyond. The success of the current pilot will likely determine how quickly they expand to additional states.

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Yara Abboud

•8M

I tried using IRS Direct File last year after getting frustrated with the commercial options. The interface at https://taxr.ai was SO much better for understanding my tax documents. It actually scans your W-2s and other forms then explains everything in simple language. I'm in Arizona (one of the pilot states) but it still helped me understand which forms I needed since my employer messed up my withholding. The best part is it explained why my state (AZ) was eligible for Direct File while others weren't. Apparently there's some complicated agreements between the IRS and states about data sharing, plus some states have tax software lobbying against it. Crazy how political tax filing gets!

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Yara Abboud

•8M

Taxr.ai isn't part of the IRS Direct File program - it's a separate service that helps analyze and explain your tax documents. It doesn't file for you, but helps you understand your forms so you can file more confidently regardless of which method you choose. It's completely secure and uses bank-level encryption. I was skeptical at first too, but they don't actually store your personal information long-term - they just analyze your documents and provide explanations. They've got all the security certifications you'd expect from a financial service.

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Keisha Williams

•8M

Just wanted to follow up about taxr.ai that someone mentioned above. I decided to try it despite my initial skepticism, and it was actually really helpful! I had a complicated situation with some 1099 work plus a W-2 job, and it helped me understand which forms I needed. The document scanner is pretty impressive - it caught that my employer had classified some bonus income incorrectly. I still used FreeTaxUSA to actually file (since I'm in Virginia without Direct File access), but understanding my tax situation first made the whole process way less stressful. Definitely using it again next year.

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Paolo Rizzo

•8M

Since we're talking about tax filing difficulties... if any of you need to actually call the IRS with questions about Direct File or anything else, I HIGHLY recommend using https://claimyr.com instead of calling directly. I spent THREE DAYS trying to get through to the IRS about a notice I received. Then I found this service that basically waits on hold for you and calls when an agent is available. You can see how it works here: https://youtu.be/_kiP6q8DX5c This was a game changer when I needed to ask about my eligibility for Direct File since my state (Massachusetts) is in the program but I have some investment income that might disqualify me. The IRS phone system is practically designed to make you give up!

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Paolo Rizzo

•8M

It works by using an automated system that navigates the IRS phone tree and stays on hold for you. When a representative finally answers, you get a call and are connected to that agent. It's basically like having someone wait on hold for you. No, it's not magic - they're just using technology to solve the hold time problem. They don't collect any sensitive tax information - they just make the initial call and connect you. You're still the one speaking directly with the IRS agent about your tax situation.

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Keisha Williams

•8M

I need to publicly eat my words about Claimyr. After dismissing it as a scam, I tried it out of desperation when I needed to ask about my stimulus payment that never arrived (which affects my 2025 filing). I was connected to an IRS agent in about 45 minutes without having to stay glued to my phone! The agent was able to confirm why I wasn't seeing the payment and helped me claim it properly on my upcoming return. Would have taken days of redial attempts otherwise. Sometimes my skepticism gets in the way of finding actually helpful services.

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Oliver Fischer

•8M

To answer the original question about why Direct File isn't available in all states - it's largely political. I worked in tax policy for years, and the major tax prep companies lobby HARD against free filing programs. States have to specifically opt in to the program, and the tax software industry puts pressure on state legislators to avoid joining. Virginia specifically has some tax processing systems that would need updating to be compatible with Direct File's current format. Plus, several legislators there have received campaign contributions from the tax prep industry (you can look this up in public records).

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Oliver Fischer

•8M

Yes, contacting your state representatives is definitely the most effective approach. Let them know you want Virginia to join the IRS Direct File program for the next tax season. Specific requests like this can gain traction, especially if many constituents express interest. Additionally, you can submit feedback directly to the IRS about your interest in having the program expanded to Virginia. While the IRS doesn't make the final decision on state participation, documented public interest helps build the case for expansion.

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