A new analysis found Pennsylvania, which signed on to use IRS Direct File stood to save about $747 million annually before the Trump administration shut the program down.

The tool was created under the Inflation Reduction Act and offered free, simplified tax filing for people earning roughly less than $200,000 yearly.

Adam Ruben, vice president of the nonprofit Economic Security Project, said the program had the potential to put billions back into families’ pockets.

"It could save existing tax filers, $8 billion in filing fees, an additional $3 billion in time saved," Ruben pointed out. "And it could help people who are missing out on tax credits like the Earned Income Tax Credit and the Child Tax Credit claim an additional $12 billion more."

A 2024 David Binder Research

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