IRS Direct File, the government's free online tax-filing tool launched under the Biden administration, won't be offered next year, even after 296,531 taxpayers used it during the 2025 season, the Trump administration confirmed this week.
Republicans Call Direct File Wasteful, Prefer Alternatives
Republican lawmakers had criticized Direct File as a waste of taxpayer money because free-filing options already exist. Treasury Secretary Scott Bessent, who also serves as IRS commissioner, told reporters, as per the Associated Press, that there are "better alternatives" and that the private sector can do the job more efficiently.
Supporters argued that ending the service would force Americans to spend more time and money filing taxes. The Treasury Department, under former Secretary Janet Yellen, repeatedly noted that the average taxpayer spends about $270 and 13 hours on a tax return. The agency said last year it intended to make Direct File permanent.
End Of Program Sends Taxpayers To Private Software
With Direct File shuttered, taxpayers must use paper returns or other software, accountants said. "There are low-cost software providers everywhere, and some offer free versions for those basically with a W-2 or interest," said San Francisco CPA Richard Pon, speaking to USA Today.
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Among no-cost options, IRS Free File, available only through IRS.gov, offers guided preparation from eight private partners to eligible filers. The IRS also continues ‘Volunteer Income Tax Assistance and Tax Counseling for the Elderly’ programs for qualifying taxpayers, and the Defense Department's MilTax provides free software and support for service members and families.
Free And Low-Cost Filing Options Still Available
Taxpayers looking for free or low-cost products can also look to widely used offerings such as TurboTax Free Edition and H&R Block Online Free Edition, which cover simple returns.
Even as the government steps back, treasury data from last year projected that tens of millions could benefit from a free, public option, highlighting the stakes for filers who face recurring time and out-of-pocket expenses each season.
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