> At a Glance
> – The IRS has officially shut down its free Direct File software as of January 2026
> – About 30 million taxpayers were eligible, but fewer than 300,000 used it in 2024-2025
> – Heavy political opposition and cost concerns drove the closure
> – Why it matters: Filers who relied on the no-cost federal tool must now find alternatives before the April 15, 2026 deadline
The IRS has quietly closed the digital door on its free Direct File program, leaving millions of eligible taxpayers to scout new options for preparing their 2025 returns.
What Direct File Offered
Launched as a 2024 pilot in 12 states and expanded to 25 states in 2025, Direct File let users with simple W-2, Social Security, retirement, or unemployment income file federal returns at no cost. Support was available in both English and Spanish, and some states allowed data transfer to state filing tools, though state prep wasn’t built in.
User satisfaction ran high, yet uptake stayed low: only about 300,000 of the 30 million eligible taxpayers tried the service.
Why It Was Axed
Throughout 2025, Republican lawmakers and tax-industry groups pressed the Trump administration to end the program.
Treasury Secretary Scott Bessent, who also serves as acting IRS commissioner, said in November:
> “We think the private sector can do a better job.”
A Treasury report to Congress cited low participation and high per-user cost, noting the tool duplicated existing free options such as IRS Free File.
By early November 2025, the IRS emailed participating states that Direct File would not return for the upcoming season; the portal now shows a “Page not found” error.
Still-Free Alternatives
- IRS Free File – public-private partnership open to those with AGI up to $84,000; covers complex situations at no cost if eligibility rules are met
- Free Fillable Forms – available to all income levels, but with minimal guidance
- Cash App Taxes – federal return free for any complexity; one state return also free
- FreeTaxUSA – federal free; state $15.99
- VITA – in-person help for incomes below $67,000, people with disabilities, or limited-English speakers
- TCE – free assistance for filers aged 60-plus
| Option | Cost | Income Cap | State Return |
|---|---|---|---|
| IRS Free File | $0 | $84K AGI | Partner-dependent |
| Fillable Forms | $0 | None | Not offered |
| Cash App Taxes | $0 | None | 1 free state |
| VITA/TCE | $0 | $67K (VITA) or 60+ (TCE) | Yes, at sites |
Retrieving Past Returns
Fliers who used Direct File in 2024 or 2025 can request a copy by mailing IRS Form 4506 with a $30 fee; electronic submission is not available.
Key Takeaways
- Direct File is gone for 2026 and has no announced restart date
- Eligible filers can still use IRS Free File or free fillable forms
- Commercial “free” tiers often upsell; Cash App Taxes and FreeTaxUSA keep federal free with transparent state pricing
- In-person help remains through VITA and TCE programs nationwide
Act well before April 15, 2026, to choose the no-cost option that best fits your return.
