IRS Direct File Discontinued: Discover Alternative Free Tax Filing Options for 2024

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In 2025, approximately 300,000 Americans embraced a new electronic system that allowed them to file their taxes directly with the IRS at no cost. Unfortunately, this convenience will not extend into 2026.

The IRS Direct File initiative, which debuted as a pilot program in 2024, offered a straightforward, free online tax filing option directly with the Internal Revenue Service. The Biden administration had initially planned for its permanent establishment, expanding its reach to 25 states by 2025.

While supporters praised the program for simplifying, speeding up, and reducing the cost of tax filing, it encountered opposition. Republican lawmakers criticized it as an unnecessary expenditure of taxpayer money, arguing that existing free filing programs already served this purpose, albeit less efficiently. Additionally, commercial tax preparation companies, which have profited substantially by charging for their services, were not in favor of this initiative.

In a November briefing at the White House, Treasury Secretary Scott Bessent, also serving as the acting IRS commissioner, expressed that “better alternatives” to Direct File exist. “It wasn’t widely utilized,” he noted, adding, “We believe the private sector is better equipped to handle this task.”

What free options are left for filing taxes?

While IRS Direct File no longer exists, IRS Free File still exists. It allows taxpayers to file federal taxes for free through partnerships with online tax preparation services (instead of directly with the agency). Not everyone can use it, however.

Your household adjusted gross income must be under $84,000 to qualify. Filing state taxes isn’t guaranteed to be free, either. (See more details about how to use Free File from the IRS here.)

If you don’t meet the income limit, the IRS says you can still use the Free File Fillable Forms – but you’ve got to do all the work. You’ll have to select the forms, input all your information, and do some calculations.

“If you are not comfortable with completing a paper return, using only the forms and instructions as a guide to file a correct return, this program is not for you,” the IRS says in its guide to using Free File Fillable Forms.

This would also only be for your federal, not state, taxes.

The IRS runs two programs, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE), which give free tax help to older adults who make less than $67,000, people who have disabilities, and those who speak limited English.

Another option for some is MilTax, a free tax filing service backed by the Defense Department that’s open to service members, eligible family members, survivors, and veterans in their first year since leaving the service.

Then there are the options from private companies. FreeTaxUSA has an e-filing program that allows everyone, regardless of income, file federal taxes for free. State tax filing services cost $15.99.

TurboTax and H&R Block both have a free version for those with simple tax situations. TurboTax says about 37% of taxpayers qualify for its free option, while H&R Block says about 55% of filers qualify.

Some states also have their own e-filing services set up for free. Others have no state income tax and don’t require filing a return at all.