The IRS will eliminate Free Direct File, a program that allows taxpayers in certain states (with simple tax situations) to file their taxes for free directly through the IRS. According to the Treasury Department, more than 30 million people were eligible to use it in 2025, and nearly 300,000 taxpayers used it during the last tax season. This benefit will no longer be available starting in 2026.
The announcement comes as part of President Donald Trump’s massive legislative package
“You’ve heard of Direct File, that’s gone. The Big Beautiful Billy erased that. I don’t care about Direct File. I care about Direct Audit,” said IRS Commissioner Bill Long regarding Direct File. The announcement comes as part of President Donald Trump’s massive legislative package, known as the One Big Beautiful Bill, which includes funding to research public-private alternatives to the Direct File model.
Some Republicans have called the program a waste and an overreach by the federal government. The Trump administration was already planning to end the Direct File program before the Big, Beautiful Bill, according to the AP. Some political sectors have criticized the program, calling it unnecessary and costly, while others see it as a key tool to democratize access to tax filing.
If the IRS permanently eliminates the Direct File program, filing taxes in 2026 could be more expensive
It’s true that the system’s transparency, simplicity, and free nature were valued by users, and its elimination could generate distrust and frustration among taxpayers. If the IRS permanently eliminates the Direct File program, filing taxes in 2026 could become more expensive and less accessible for millions of Americans.
Despite the announcement, the IRS confirmed that taxpayers with extensions will still be able to access Direct File until October 15, 2025. The disappearance of Direct File could translate into higher costs and more complications for millions of people. In any case, even if Direct File is eliminated for the next tax season, taxpayers may still have options to file their taxes for free.
Although there are different eligibility requirements, including adjusted gross income and residency status
The IRS has another free filing program where the agency partners with third-party tax preparation software companies to offer services to taxpayers, although there are different eligibility requirements, including adjusted gross income and residency status. It’s a matter of going online and seeing if you qualify. These are the options:
- IRS Free File Program, in partnership with proprietary software companies. Eligibility varies by income and residency status.
- Those interested can also prepare their taxes on their own by accessing free fillable IRS forms and submitting them directly to the agency.
- In addition, the IRS sponsors the Volunteer Income Tax Assistance program, which helps taxpayers with incomes under $67,000 per year by 2025, who are disabled or have limited English proficiency, obtain free in-person tax preparation assistance.
It’s recommended to consult official websites to avoid wasting time in case the process
While other options exist, none offer the same combination of simplicity, free access, and direct control as this pilot system. We’ll be waiting to see if this is a permanent or temporary change and to what extent it will actually impact stakeholders.
In any case, it’s important for anyone affected by this adjustment to consult official sources to stay informed. As we’ve seen in recent months, rules and laws change in a matter of weeks, so before completing any procedure, it’s recommended to consult official websites to avoid wasting time in case the process requirements have changed.
