The I.R.S. Shut Its Direct File, but Here Are Other Free Filing Options

The federal government tested a free, direct online tax-filing program for two years but, with the change in administrations, has now shut it down. There are still ways, though, to file your return at no charge, using government or commercial options.

Direct File, a program started in the Biden administration, was tested by the Internal Revenue Service in 25 states, and the agency had planned to expand it. The program was well received by users. About 300,000 filers used Direct File last year to file their 2024 taxes. But it was opposed by the commercial tax software industry and Republican lawmakers, who called it “unauthorized and wasteful.”

Last fall, the Treasury Department said it was suspending Direct File “due to the program’s high costs, limited participation and the agency’s need to focus resources on other priorities.” It recommended that the I.R.S. focus instead on its longtime Free File program, a partnership with a group of do-it-yourself tax software firms.

Tim Hugo, executive director of Free File Alliance, a nonprofit coalition of tax software firms, said in an email that the I.R.S. had “contacted last year’s Direct File users regarding Free File” and had placed a link to Free File at the top of the agency’s home page.

A bill introduced by Democrats on Thursday would reverse the suspension of Direct File and enshrine it in law so it could be expanded and remain a permanent option. The bill would also bar the I.R.S. from entering into agreements that would restrict its ability to offer free online tax preparation and filing services. The measure’s odds of success are unclear in the near term, however, without bipartisan support.

But there are still free options available for filing your return. The federal filing deadline is April 15.

What is the I.R.S. Free File program?

Free File, a longtime arrangement between the I.R.S. and commercial tax software firms, generally allows filers with 2025 adjusted gross income of $89,000 or less to have their federal tax return — and in some cases their state returns — filed at no charge. (Adjusted gross income, or A.G.I., is your income minus certain deductions.)

This year, eight firms, including TaxAct and TaxSlayer, are participating, and they can set their own criteria. Two of the most well-known tax software providers, TurboTax and H&R Block, no longer take part in the program. (They each offer their own free products separately; more on that later.)

To start your Free File return, start at IRS.gov/FreeFile, or use the IRS2go mobile app, to be sure you are using the Free File version of the software.

The Free File program has generally had lackluster results. About 70 percent of filers could use it, but just 3 percent do, the Government Accountability Office has reported. Plus, the practices of some participating tax firms have faced scrutiny.

Intuit, the maker of TurboTax software, left the Free File program in 2021. It agreed in 2022 to a multistate legal settlement that required it to repay $141 million to more than four million tax filers who were charged for tax services that they were eligible to receive at no cost. Intuit admitted no fault in the settlement.

If you aren’t eligible for Free File but you’re comfortable preparing your own return, you can use the I.R.S. “Free Fillable Forms” option, available online, to complete and file your return.

Do companies offer free tax software outside of I.R.S. Free File?

Yes. Some firms offer their own free tools directly to certain filers, with varying eligibility criteria.

TurboTax Free Edition, for instance, sets no income limit for users, said a spokeswoman, Lisa Greene-Lewis. The free tool is available to filers with “simple” Form 1040 returns with no schedules, except for those used to claim the earned-income tax credit; the child tax credit; and Schedule 1-A, the new form for claiming certain deductions related to overtime pay and tips. The tool can’t be used, however, by filers who itemize deductions or have unemployment income. More than a third of all tax filers are eligible to use the free version, Intuit says.

H&R Block similarly sets no income limit for its H&R Block Online Free Edition, but defines “simple” returns differently. It accepts Form 1040 filers claiming the earned-income tax credit, the child tax credit and the new Schedule 1-A, according to the company’s website. But it also allows filers with unemployment income reported on Form 1099-G. About half of filers qualify for the free tool, its website says.

Intuit last year reported eight million returns prepared with its free commercial TurboTax product, while H&R Block reported preparing about three million, according to the Tax Policy Center. (Last year, the I.R.S. reported receiving a total of about 164 million tax returns as of mid-October.)

What other free filing options are available?

Two I.R.S.-sanctioned programs offer free tax preparation from trained volunteers, for older people and filers with low or moderate incomes. The sites are often at churches, libraries or community centers.

One, the Tax Counseling for the Elderly program, focuses generally on older people. (This year, for example, there is a new “enhanced” senior deduction for those 65 and older; it’s worth up to $6,000 for individuals and $12,000 for married couples below certain incomes.) Many sites are run by AARP Foundation Tax-Aide, which generally serves those 50 and older; you can search online to find a location near you.

The Volunteer Income Tax Assistance program, known as VITA, generally prepares and files returns for people who make $69,000 or less, are disabled or speak limited English. Some sites require appointments. To find a location, search the VITA online locator tool or call 800-906-9887.

What if there’s no VITA site near me?

Contact GetYourRefund.org, a service that aims to fill gaps in the VITA program by offering free virtual tax preparation for lower- and moderate-income people. (The service was created by Code for America, a nonprofit, in partnership with VITA.)

“It’s a one-stop shop for free, high-quality tax preparation,” said Annelise Grimm, a tax-benefits expert at Code for America. It’s important for many low-income families to file a return, even if they are not required to do so, to claim tax credits they may be eligible for, she said.

GetYourRefund offers assisted filing, in which people generally making up to $69,000 can upload their documents to have their federal and state returns prepared by an I.R.S.-certified tax preparer. It also offers a do-it-yourself option, allowing people with incomes of up to $89,000 to use free online software to file their federal and state returns and get help if they need it.