IRS Discontinues Free Direct File Tool: What Taxpayers Can Use Now

What happened: IRS discontinues Free Direct File Tool

The IRS recently discontinued the Free Direct File tool that allowed some taxpayers to file federal returns directly with the agency. This change affects people who expected a simple, no-cost online filing option through the IRS website itself.

The switch does not change filing deadlines or the need to file accurate returns. It only affects the channels taxpayers use to submit their federal returns.

Why the IRS discontinues Free Direct File Tool

The IRS cited concerns around development, security, and long-term maintenance as reasons for ending the Direct File tool. Building and supporting a taxpayer-facing filing system requires repeated investments and ongoing technical work.

At the same time, private tax software companies and IRS Free File partners continue to offer online filing options that the IRS says still serve most taxpayers.

What taxpayers can use now instead of Direct File

If you used or planned to use the Direct File tool, you still have several workable options. Choose based on your tax situation, comfort level, and whether you qualify for free services.

IRS Free File Fillable Forms

Free File Fillable Forms are electronic versions of IRS paper forms. They are best for people comfortable preparing their own tax return without guided help.

• Available year-round on the IRS website.
• Suitable for basic and some more complex returns if you understand tax rules.
• No guided question-and-answer interview, so you must know which forms and schedules you need.

IRS Free File (Commercial partner offers)

The Free File program pairs the IRS with private tax software vendors. Many taxpayers with adjusted gross incomes below a specific threshold qualify for fully free, guided software.

• Guided interview and automatic math checks.
• Often includes state return options; check each offer’s terms.
• Eligibility limits apply—verify income and other qualifying criteria.

Commercial tax software and paid filing services

If you do not qualify for Free File or prefer a full guided experience, paid commercial tax software is an option. These platforms offer help for complex returns, audit support, and live help at extra cost.

• Common providers: TurboTax, H&R Block, TaxAct, and others.
• Many offer free federal filing for simple returns but charge for state returns or advanced forms.
• Look for discounts, free federal offers, or volunteer income tax assistance if cost is a concern.

Volunteer and community tax help

Free in-person help is available to eligible taxpayers through programs like VITA (Volunteer Income Tax Assistance) and TCE (Tax Counseling for the Elderly). These are run by IRS-trained volunteers.

• VITA: For low-to-moderate income, persons with disabilities, and limited English speakers.
• TCE: Focused on seniors and retirement-related tax questions.
• Services are often free and can include e-file submission.

Comparison: Direct File vs alternatives

Direct File provided a simple government-run filing route. Alternatives differ in guidance, eligibility, and cost. Choose based on these factors:

• Ease of use: Commercial software and Free File partners offer guided steps; Fillable Forms do not.
• Cost: Free File options are free for qualifying taxpayers. Commercial software may charge.
• Support: Paid services and some Free File partners provide live help; Fillable Forms and Direct File had limited support.

How to choose the best alternative for you

Follow a simple decision approach. First, check if you qualify for Free File partner offers. If you do, compare vendors for state filing and additional fees.

If you prefer no-cost but can prepare your return, choose Free File Fillable Forms. If your return is complex or you want live help, consider paid software or a tax preparer.

Quick checklist

• Confirm income and eligibility for IRS Free File partner tools.
• Decide if you need state filing and whether it is included.
• Consider volunteer programs if you need free in-person help.
• Back up your documents and choose e-file for faster processing.

Real-world example: Switching from Direct File

Case study: Sarah is a 32-year-old teacher who used the Direct File tool when it was available. Her return is fairly simple: W-2 income, student loan interest, and a small freelance 1099.

Because Sarah wants guidance and math checks, she checked the IRS Free File partner offers and qualified for a free guided federal return with one vendor. The vendor also offered a low-cost state filing option. Sarah completed the guided interview, e-filed both federal and state returns, and received her refund within 21 days.

This route gave Sarah the ease of Direct File with the added help of commercial software.

Practical tips for filing after Direct File

• Visit irs.gov/freefile to see current partner offers and eligibility rules.
• Keep digital copies of your W-2s, 1099s, and receipts before starting an online filing session.
• Use e-file and direct deposit for faster refunds and confirmation receipts.
• Be careful with “free” offers that later upsell state filing or additional services.

Final thoughts

The IRS discontinuing the Free Direct File tool changes how some taxpayers will file, but it does not remove free or low-cost alternatives. Assess your comfort with tax rules, check Free File eligibility, and consider volunteer help or reputable commercial software when needed.

If you are unsure which option fits your situation, start at the IRS Free File page or contact a community tax assistance program for guidance.