IRS explains why it stopped ‘Direct File’ option and how you can still file for free

It’s the beginning of a new year, which means fresh resolutions, forgetting to write the proper year number for a month and filing taxes.

In 2025, over a quarter of a million people used the IRS Direct File system, which allowed them to directly file their taxes with the Internal Revenue Service for no cost. Unfortunately, this service is no longer available and hundreds of thousands are looking for a free alternative in 2026.

“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,” The Hill reported. “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.)”

For those who don’t qualify for this free service, there are still options available.

“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,” the outlet noted.

Even the IRS website warns that those who are not “comfortable with completing a paper return, using only the forms and instructions as a guide to file a correct return” may not want to use the program.

It’s worth noting that these options also only cover your federal filings, not your state returns.

ADVERTISEMENT

“The IRS runs two programsVolunteer 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,” The Hill wrote. “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.”

Treasury Secretary and acting IRS commissioner Scott Bessent spoke about the Direct File system with reporters in November, noting that there are “better alternatives” available to taxpayers, saying it “wasn’t used very much.”

“And we think that the private sector can do a better job,” he added.

The system was also unpopular among commercial tax software companies, who viewed it as competition for their paid software options.

Sierra Marlee

Comment

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

Latest Articles