At a Glance
- IRS Direct File, which allowed free online filing directly with the IRS, ended in 2026.
- IRS Free File still exists but requires an adjusted gross income under $84,000.
- Private companies like FreeTaxUSA, TurboTax, and H&R Block offer free federal filing for many users.
- Why it matters: Taxpayers must know which free programs fit their income level and filing complexity.
Nearly 300,000 Americans used IRS Direct File in 2025, but the service was discontinued in 2026. The pilot launched in 2024, expanded to 25 states in 2025, and was praised for being easy and economical. Republican lawmakers and commercial tax-prep firms criticized it as a waste of money.
What Happened to IRS Direct File
IRS Direct File was a pilot that let taxpayers file directly with the IRS online for free. In 2025 it covered 25 states, but by 2026 the program was no longer available. Treasury Secretary Scott Bessent said:
> “It wasn’t used very much.”
> “We think that the private sector can do a better job.”
Free Filing Options Still Available
The IRS still offers Free File, which partners with online tax-preparation services. Eligibility requires a household adjusted gross income under $84,000. State taxes are not guaranteed free.
- File federal taxes for free through partner services.
- Must meet the income threshold.
- State filing may incur fees.
If the income limit is exceeded, taxpayers can use Free File Fillable Forms, but they must complete all work themselves. The program is only for federal taxes, and the IRS warns:
> “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.”
Other Free Programs
The IRS runs two volunteer programs:
- VITA (Volunteer Income Tax Assistance) for older adults under $67,000, people with disabilities, and limited-English speakers.
- TCE (Tax Counseling for the Elderly) for similar groups.
MilTax is a free service backed by the Defense Department for service members, eligible family members, survivors, and veterans in their first year after leaving the service.
Private Company Alternatives
Several private firms offer free federal filing:
- FreeTaxUSA: free e-filing for all incomes; state filing costs $15.99.
- TurboTax: free version for simple returns; about 37% of taxpayers qualify.
- H&R Block: free version for simple returns; about 55% of filers qualify.
Some states provide their own free e-filing services; others have no state income tax.
| Program | Income Limit | Federal/State | Cost |
|---|---|---|---|
| IRS Free File | <$84,000 | Federal | Free |
| FreeTaxUSA | None | Federal & State | Free federal; $15.99 state |
| TurboTax Free | None | Federal | Free |
| H&R Block Free | None | Federal | Free |
Key Takeaways
- IRS Direct File ended in 2026, forcing taxpayers to seek other free options.
- IRS Free File remains but only for those with income under $84,000.
- Private companies and volunteer programs provide alternatives for both federal and state filings.
Choosing the right free filing method depends on income level, filing complexity, and whether state taxes are required.
