IRS Direct File Ends: Discover Free Alternatives for Tax Filing

Share and Follow

(NEXSTAR) – In 2025, a new electronic system allowed nearly 300,000 Americans to file their taxes directly with the IRS at no cost. However, this option will no longer be available in 2026.

Launched as a pilot program in 2024, IRS Direct File provided a way for Americans to submit their tax returns online directly to the Internal Revenue Service for free. The Biden administration had announced plans to make the program permanent, with an expansion to 25 states by 2025.

Advocates of the program praised it for simplifying the tax filing process, making it quicker and more affordable. Nonetheless, it faced pushback from Republican lawmakers who labeled it a misuse of taxpayer money since other free filing programs already exist, albeit with cumbersome processes. Additionally, commercial tax preparation companies were not pleased with IRS Direct File, as it threatened their lucrative business of charging for tax software.

In a November briefing at the White House, Treasury Secretary Scott Bessent, who is also serving as the acting IRS commissioner, expressed that there are “better alternatives” to the Direct File system. He remarked, “It wasn’t used very much,” and added, “We believe the private sector can offer a superior solution.”

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.

The Associated Press contributed to this report.