The Illinois Department of Revenue has joined the IRS Direct File pilot for the 2025 tax season, allowing residents to prepare and file both federal and state tax returns for free. The move expands digital filing access and aims to reduce costs and errors while modernizing Illinois’s electronic tax system for taxpayers statewide.
Illinois is one of 24 states participating in the expanded IRS Direct File pilot, more than doubling the number from the previous year’s 12-state launch. The partnership gives taxpayers new options to file electronically without relying on commercial software, which can cost between $50 and $200 per return.
The collaboration is part of a larger federal effort to simplify the interaction between taxpayers and government agencies. For Illinois residents, it represents an opportunity to handle all tax reporting in one streamlined digital experience, reducing paperwork and processing delays. State officials emphasized that improving access to free online filing tools is a significant step toward equitable tax administration.
Taxpayers can complete their federal return directly through the IRS Direct File portal and are automatically redirected to the MyTax Illinois account system to file their state return. This integration helps eliminate duplicate data entry and ensures consistent reporting across both systems, improving accuracy for individual taxpayers and treasury agencies alike.
According to the Internal Revenue Service, the Direct File platform supports common income types, including wages, Social Security, and unemployment compensation. It also accommodates major credits, including the Earned Income Tax Credit, Child Tax Credit, and deductions for student loan interest or Health Savings Accounts.
The Illinois Department of Revenue confirmed that the 2025 tax filing season will open on January 27, 2025, with an April 15 deadline for both federal and state returns. Electronic access will remain available until October 15 for taxpayers using the Direct File feature.
The new platform features security measures, including a locked padlock icon and personalized verification codes, to prevent the delivery of fraudulent messages. Each user session is encrypted and monitored for unusual activity to protect taxpayer data.
The department said that accessibility remains a top priority. Direct File is available in both English and Spanish, and the MyTax Illinois portal supports digital assistance features, including chat help and guided walkthroughs for new users. These enhancements ensure that taxpayers can prepare and file with confidence, regardless of their level of experience with online systems.
Electronic filing has become the standard method for taxpayers nationwide, offering faster processing, quicker refunds, and fewer errors than paper returns. Illinois has encouraged residents to file electronically through the MyTax Illinois account system for several years, offering options to pay balances, view prior filings, and download tax records online.
The state’s participation in the IRS Direct File pilot reflects a coordinated effort to simplify tax filing at both the federal and state levels. The Internal Revenue Service launched the pilot in 2023 to test a free, government-run filing option. Strong participation and high satisfaction prompted its expansion in 2025.
The Illinois Department of Revenue stated that the partnership helps align data sharing between agencies, while also improving efficiency in related areas, such as the property tax system, cigarette tax returns, and motor fuel tax law reporting. Officials noted that the updates support ongoing reforms under recent public acts aimed at increasing transparency and reducing administrative burdens on certain taxing jurisdictions.
Illinois’s inclusion also helps local governments track gross receipts and revenue committed under existing state programs. By integrating Direct File with MyTax Illinois, the state aims to reduce eligible penalties, enhance compliance, and simplify the process for Illinois customers to report income and respond electronically to final notices.
“Taxpayers should be aware of these changes,” said IRS Commissioner Danny Werfel. “Direct File allows millions of individuals to file their federal returns for free and then continue directly to their state system without paying third-party fees. Our goal is to make filing taxes easier and more accessible for everyone.”
An Illinois Department of Revenue spokesperson said the collaboration with the IRS underscores the state’s commitment to modernization and public trust. “Our focus is to provide updated information, accessible tools, and secure options for taxpayers to submit returns electronically through MyTax Illinois,” the spokesperson said.
Associations representing residential and commercial property owners said the combined filing system could help reduce outstanding eligible tax liabilities and interest forgiven for late payments. Labor unions and community organizations called the expansion a practical win for working families, particularly those who rely on free filing services.
Consumer advocates said that integrating state and federal systems would lower the risk of mismatched records and errors in income tax filings. The Illinois Department plans to expand outreach through local libraries, community colleges, and professional associations to help residents navigate the transition and take advantage of the free tools available.
Taxpayers can confirm eligibility for the Direct File pilot on the IRS website or through the Illinois Department of Revenue’s portal. After completing their federal return, users will be redirected automatically to the MyTax Illinois account page to finish their state return.
The department recommends responding electronically to any identity verification letters or final notices to prevent delays. Individuals can also use webpage response options or contact the Taxpayer Assistance Hotline for guidance on payment plans, registration updates, or supporting schedules.
The 2025 rollout of Direct File reflects Illinois’s broader commitment to digital government and economic opportunity. By combining federal and state tools, the Illinois Department of Revenue aims to strengthen compliance, improve customer service, and ensure taxpayers can prepare and file taxes electronically with confidence.
Taxpayers can find more information or begin filing through the following official sources:
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