Want to know if you can use federal and state direct e-filing options in 2025? Use the IRS eligibility checker

Oregon resident taxpayers who want to know if they will be eligible to use the combination of IRS Direct File and Direct File Oregon to electronically file their tax year 2024 federal and state income tax returns next year can find out using the IRS eligibility checker.

The IRS estimates that 640,000 Oregon taxpayers will be among the 30 million U.S. taxpayers who will be able to use IRS Direct File in 2025 to e-file both their federal and state returns for free.

To find out if they qualify, taxpayers can use the IRS eligibility checker. They’ll be asked a few simple questions about the types of income they report on their tax return and a few more about credits and deductions they claim. Taxpayers who are eligible to use IRS Direct File can start the registration process now by creating an online account to access IRS services.

Taxpayers should also make sure their information is current in Revenue Online, the state’s internet tax portal. Those who don’t have a Revenue Online account can sign up on the agency’s website.

The first time taxpayers log in to their Revenue Online account, they will be prompted to set up two-step verification to help protect their profile. The two-step verification can be done through an authentication app, text message, or email. The department recommends choosing to setup multiple options in case access to a specific device or account is unavailable.

The IRS first offered a direct file option as part of a pilot program in 12 states in the second half of the 2024 tax season. The U.S. Department of the Treasury announced in May that it would make IRS Direct File a permanent option for taxpayers and invited all 50 states to participate to create a seamless free filing system for both federal and state taxes. Oregon was the first of 12 new states to accept the invitation from the IRS in June.

In the first full year in 2025, the federal government is expanding the types of returns that can be filed using IRS Direct File.

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 also 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.)

Using the eligibility checker is best way for taxpayers to determine if their particular tax situation will make them eligible for the direct file program. Any Oregon resident taxpayer who is eligible to use IRS Direct File in 2025 and is not a first-time filer in Oregon will be able to seamlessly connect to Direct File Oregon to file their state income tax return.