Mark Cuban wants Americans to ditch pricey tax software and file their taxes for free. In a recent Bluesky post, the billionaire entrepreneur encouraged users to take advantage of the IRS Direct File system, calling it a secure, simple way to file taxes that doesn't cost a cent.
"File your taxes using IRS Direct File, a free, secure, accurate and accessible product from the IRS," Cuban wrote. "It is available in 25 states and allows you to import your tax information, like your W-2, directly from the IRS."
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What Is Direct File?
The program, first piloted in 2024, is now expanding and available to more than 30 million Americans. Taxpayers in 24 states who lived there for all of 2024 are eligible to use the platform. The list includes large states like California, Florida, New York and Texas, and it's expected to grow in the future.
Direct File is part of a government push to make filing taxes cheaper and easier for ordinary Americans. Created by the U.S. Digital Service and backed by funding from the Inflation Reduction Act, the program is meant to cut out the middleman. For many users, it replaces expensive software and paid preparers.
It supports common income types like W-2 wages, Social Security, unemployment, interest over $1,500 and non-IRA pension income. It also allows filers to claim credits like the Earned Income Tax Credit, Child Tax Credit, and the Retirement Saver's Credit. But it doesn't yet support gig work, rental income, or itemized deductions.
The Treasury Department said on its website says the average taxpayer spends 13 hours and $270 filing taxes. Cuban sees Direct File as a way to change that.
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Why Cuban Says It's Under Threat
In a follow-up post, Cuban warned that the program could be on the chopping block.
"BTW, [Department of Government Efficiency] wants to end this program, created by USDS. They say there aren’t enough users. Let’s prove DOGE wrong — it’s a great program that simplifies filing your taxes," he wrote.
DOGE has reportedly pushed for deep cuts in federal jobs and programs, including hundreds of thousands of layoffs across agencies.
Cuban sees Direct File as a tool that helps regular people and shouldn't be scrapped just because it doesn't yet have massive adoption.
He Puts His Money Where His Mouth Is
Cuban said he paid $275.9 million in taxes last year and was happy to do it.
"I pay what I owe. This country has done so much for me, I’m proud to pay my taxes every single year," he wrote on X. When someone asked if billionaires should be taxed more instead of cutting essential government jobs, Cuban replied simply: "Yes."
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The money he paid mostly came from long-term capital gains tied to his $3.5 billion sale of his majority stake in the NBA's Dallas Mavericks. Instead of using that windfall to call for tax breaks, Cuban is calling for a fairer system.
"We only get to be entrepreneurs and enjoy the freedoms we have because of the men and women who dedicate their lives to protecting our country," he told CNBC. "They deserve every penny they get, and my taxes go to support them."
How To Use Direct File
To see if you qualify, visit DirectFile.irs.gov. The system works on smartphones, tablets and computers, and is available in Spanish as well.
For eligible taxpayers, it's a chance to file taxes quickly, for free, without hidden fees or upsells. And if Cuban has his way, using the tool might also help keep it alive.
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