Elizabeth Warren Has A Prophecy About The 2026 Tax Season, Says Demise Of Direct File Means 'Huge Profits' For Some And Americans Getting Ripped Off

Sen. Elizabeth Warren (D-Mass.) on Tuesday blasted expected price hikes from tax-prep giants TurboTax and H&R Block, blaming Trump administration policies that killed the IRS's free Direct File system and layered on new Republican tax breaks that make filing more complicated for millions of Americans.

Warren Links Higher Tax Filing Prices To Trump Policies

"Thanks to Donald Trump, here's how this tax season will go: TurboTax and H&R Block will raise their prices and rake in huge profits by ripping American taxpayers off," Warren wrote on X.

Warren shared a Politico report stating that Direct File gave taxpayers a no-cost alternative just as companies like Intuit, which owns TurboTax, and H&R Block were warning investors about rising costs and growing competition.

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GOP Megabill And Decision To End Program

The report said those worries vanished after Republicans' "One Big Beautiful Bill" added new deductions and credits that complicate returns, while the Trump administration moved to shut Direct File down, likely driving more filers back to paid software.

Direct File stemmed from a 2023 IRS study that found 72% of surveyed taxpayers were interested in using a government e-file tool. Reuters reported in May 2023 that the agency estimated a national system would cost between $64.3 million and $248.9 million a year to operate, potentially less than $10 per return, compared with about $40 now paid on average for simple returns handled by private firms.

End Of Direct File Leaves Fewer Options

The pilot handled about 140,800 returns in its first season and roughly 296,500 in 2025 before the Trump administration decided it would not be offered again, according to an Associated Press report. Treasury Secretary Scott Bessent argued there are "better alternatives" and that the private sector can do the job more efficiently.

With Direct File gone, taxpayers must either file on paper or turn to commercial software and existing, limited free options.

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