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The IRS has discontinued its free Direct File option, a move that impacts taxpayers looking to file directly with the agency in 2026. Last year, approximately 300,000 individuals took advantage of this service, but it is no longer available for the current tax season. Although there remains a no-cost filing method through the IRS, it is not universally accessible.
As the deadline for filing taxes swiftly approaches, it’s important to understand the options available for filing taxes without incurring fees. Originally launched in 2024 as a pilot initiative, IRS Direct File aimed to simplify the tax filing process by allowing Americans to submit their returns directly to the IRS online at no charge. The Biden administration had plans to make this program permanent, with the intention of extending it to 25 states by 2025.
Advocates praised IRS Direct File for its straightforward, swift, and cost-efficient approach to tax filing. However, the program faced opposition from Republican lawmakers who criticized it as an unnecessary expenditure of taxpayer dollars, arguing that free filing alternatives are already in place, albeit often challenging to navigate. Additionally, commercial tax preparation companies expressed discontent, as they have long profited from the fees associated with their software solutions.
What was IRS Direct File and why did the Trump administration get rid of it?
IRS Direct File launched as a pilot program in 2024 as a way for Americans to file directly with the IRS online and for free. The Biden administration announced it would become permanent, expanding it to cover 25 states in 2025.
Proponents said it made tax filing easy, fast and economical. However, it faced criticism from Republican lawmakers, who called it a waste of taxpayer money because free filing programs already exist (though they are difficult to use). Commercial tax preparation companies weren’t big fans of IRS Direct File either, considering they have made billions from charging people to use their software.
Treasury Secretary Scott Bessent, who is also the acting IRS commissioner, told reporters at the White House in November that there are “better alternatives” to Direct File. “It wasn’t used very much,” he said. “And we think that the private sector can do a better job.”
What are my options for filing taxes for free?
For those who make $89,000 or less per year, IRS Free File offers free guided tax preparation. It allows you to choose from eight IRS partners, such as TaxAct and FreeTaxUSA, but only if your household is under the income limit.
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 also funds two programs that offer free tax help: Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). People who earn $69,000 or less a year, have disabilities, or are limited English speakers, qualify for the VITA program. Those who are 60 or older qualify for the TCE program. The IRS has a site for locating organizations hosting VITA and TCE clinics.
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 52% 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.