(NEXSTAR) — In 2025, nearly 300,000 Americans used a new electronic system to file their taxes directly with the IRS for free. In 2026, that’s no longer an option.
IRS Direct File launched as a pilot program in 2024 as a way for Americans to file directly with the Internal Revenue Service 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 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, to 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.