Oregon resident taxpayers preparing their own tax returns in 2025 will have the option to electronically file both their federal and state income tax returns using the combination of IRS Direct File and Direct File Oregon, according to the IRS and the Oregon Department of Revenue.
“The Direct File Program is a game-changer for taxpayers,” Governor Tina Kotek said. “This free filing option is an equitable opportunity to save Oregonians time and money, regardless of their income.”
The IRS and US Treasury Department announced an expansion of the types of returns that can be filed using IRS Direct File beyond what was available in the pilot program during the 2024 tax filing season.
During the pilot last year, IRS Direct File covered limited tax situations, including wage income reported on a W-2 form, Social Security income, unemployment compensation and certain credits and deductions.
For the 2025 filing season, IRS Direct File will support Forms 1099 for interest income greater than $1,500, retirement income and the Form 1099 for Alaska residents reporting the Alaska Permanent Fund dividend. (See the attached graphic for more on who will be able to use IRS Direct File in 2025.)