Coloradans will soon be able to file their state and federal income taxes online for free starting in tax year 2025, which will be filed in early 2026. The program, created by the Inflation Reduction Act, will allow taxpayers to use the IRS’ free Direct File program for both state and federal taxes.
The initiative is expected to save Coloradans an estimated $140 million a year in filing fees and help residents qualify for over $80 million in federal tax credits by 2029. The program aims to simplify the tax filing process, which can be confusing, time-consuming, and expensive. Governor Jared Polis expressed the importance of making it easier for Coloradans to file their taxes.
Currently, taxpayers can file their Colorado state income taxes for free separately from federal filings through the Colorado Department of Revenue website. The IRS has launched a pilot program for the Direct File system and is expanding it to any state that wants to participate in upcoming filing seasons.
The program is seen as a positive step in improving the tax filing experience for residents of Colorado. By signing up for their weekly newsletter, The Spot, Coloradans can stay informed about updates and developments in Colorado Politics.
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