Coloradans will soon be able to file their federal income taxes directly online for free under a program created by the Inflation Reduction Act.
Beginning with tax year 2025 — filing for which happens in early 2026 — Coloradans will be able to use the IRS’ free Direct File program to submit their state and federal taxes online for free. Taxpayers can now directly file their Colorado state income taxes for free — separately from federal filings — through the Colorado Department of Revenue website.
Under the program, Coloradans will save an estimated $140 million a year in filing fees, and the system will help residents qualify for $80 million-plus in federal tax credits by 2029, according to an analysis by the Economic Security Project. The study was cited by Gov. Jared Polis’ office when announcing the change this week.
“Filing taxes is no fun. It is often confusing, time-consuming and expensive, which is why we’re taking steps to make it easier for Coloradans to file,” Polis said in a statement.
The IRS launched a limited Direct File pilot program this past filing season and is expanding it to any state that wants to participate for upcoming filing seasons.
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