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The IRS is discontinuing the Direct File program, free guided tax software for taxpayers in 25 states, for the upcoming filing season.
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Other free federal tax preparation programs will continue to be available during the 2026 filing season for many taxpayers.
A free tax preparation program used by thousands of taxpayers will not be available next filing season.
IRS Direct File, which provided free guided tax software directly from the IRS website to taxpayers in 25 states, was discontinued. Treasury Secretary Scott Bessent, also the current acting commissioner of the IRS, told reporters that there are “better alternatives” and “that the private sector can do a better job.”
Following an order from the “One Big, Beautiful Bill,” an IRS task force was recently created to investigate the costs of Direct File and the price of replacing the program. The bill called for the IRS to expand use of the Free File program, free federal tax preparation software distributed by private sector companies for taxpayers with an annual income of $84,000 or less. Currently, the program is available to about 70% of taxpayers, but only about 2% of taxpayers used it last filing season.
Republican lawmakers have previously called for the elimination of the Direct File program, arguing that it is “unauthorized and wasteful.” The program cost approximately $41 million to operate during fiscal year 2024. About 0.2% of all tax returns (a total of 296,531) were filed using Direct File during that year.
Although the program has low utilization, most taxpayers had a favorable opinion of it. Nearly three-quarters of taxpayers were interested in using Direct File, according to a December 2024 survey by the Urban Institute. Of taxpayers who used Direct File this year, 94% said their experience was “Excellent” or “Above Average” in the IRS’ 2025 filing season report.
The Direct File program was available for all taxpayers in participating states, regardless of income level, to file their taxes for free. On average, Americans spend $290 on tax preparation sites and advisors to file their taxes, according to a report from the National Taxpayers Union Foundation.
For the 2026 filing season, other federal programs will continue to offer a free guided filing experience to many taxpayers. Taxpayers will also always have the option to complete their own return electronically or on paper for free.
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Free IRS File
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This guided tax software is available for taxpayers with an adjusted gross income of $84,000 or less. It connects taxpayers with an IRS partner company, where taxpayers can complete a simple questionnaire that guides them through their federal tax return.
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Voluntary Income Tax Assistance Program
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This program provides free tax advice to people who earn $67,000 or less, have a disability, and speak limited English. The service provides taxpayers with a certified volunteer who can help them file their tax return.
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Tax Advice for Seniors
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In addition to the Voluntary Income Tax Assistance program, taxpayers age 60 and older can receive free tax help, specifically related to pensions and other retirement-related issues.
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Free private options
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Some private filing companies offer free filing options for taxpayers with specific income levels or occupations.
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Free File Fillable Forms
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These forms are available to download and submit electronically through the IRS for all taxpayers. However, these forms are unguided and may be more difficult to navigate for many.
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