Direct File primarily served high-income taxpayers who could afford commercial tax preparation services.

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Direct File served taxpayers with simple tax situations, not high-income filers. Users saved an estimated $5.6 million in tax preparation fees—money that would have gone to commercial preparers. The program received over $90 million in refunds and paid $35 million in taxes owed, suggesting many were lower-to-middle income filers. Treasury estimated Direct File could cover about one-third of federal tax returns (19 million taxpayers), primarily those with straightforward W-2 income rather than complex business or investment returns requiring paid preparers.

Direct File primarily served high-income taxpayers who could afford commercial tax preparation services.

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