The IRS has discontinued its Direct File tool. Taxpayers who expected an IRS-run free online filing option need to choose other safe and affordable ways to file federal tax returns.
What it means now that IRS Discontinues Free Direct File Tool
When the IRS discontinues a direct, in-house filing tool, the primary impact is that there is no single IRS-operated web application that walks every filer through a guided free return online.
That does not mean free or low-cost filing options disappear. Instead, taxpayers must pick from several alternatives depending on income, tax complexity, and comfort with online tools.
Alternatives after IRS Discontinues Free Direct File Tool
Here are practical alternatives to the discontinued Direct File tool. Each option fits different needs.
- IRS Free File partners – Private tax software companies offer free guided filing for eligible taxpayers. This is different from a direct IRS tool but still free for many users.
- Free File Fillable Forms – An IRS-hosted electronic option for people comfortable completing tax forms. It is not guided and suits simpler returns or experienced filers.
- Volunteer programs (VITA/TCE) – In-person or virtual help for low- and moderate-income taxpayers, people with disabilities, and limited-English speakers.
- Commercial tax software – Paid services from major companies often include free tiers for simple returns and reasonably priced paid plans for more complex returns.
- Paid tax preparers – Use a local CPA or enrolled agent for complex situations or when professional advice is required.
- Paper filing – Still an option, though slower. Use certified mail or tracked delivery if you want proof of submission.
How to choose an alternative
Choosing the right alternative depends on these factors: income level, return complexity, need for guidance, cost tolerance, and security preferences.
- Check eligibility – Free File partner offers often limit eligibility by income, age, or state. Always confirm current limits on the IRS site.
- Consider complexity – If you have W-2 income and no major credits or itemized deductions, free or low-cost options are usually fine.
- Security – Use reputable providers that support multi-factor authentication and clear privacy policies.
- Time and support – Volunteer programs and paid preparers offer human help; software options offer guides and chat support.
Step-by-step: Filing without the Direct File tool
Follow these practical steps to file after the IRS Discontinues Free Direct File Tool.
- Gather documents: W-2s, 1099s, last year’s return, receipts for deductions, and Social Security numbers.
- Compare options: Visit the IRS Free File page, check Free File Fillable Forms, or research commercial software free tiers.
- Create accounts: For software or Free File partners, create a secure account and enable two-factor authentication if available.
- Prepare and review: Use the software prompts or forms carefully; double-check names, SSNs, and bank routing numbers for direct deposit.
- File electronically: E-file is faster and safer than paper. Save confirmations and download copies of your return.
Costs and hidden fees to watch for
Some companies advertise free filing but charge for state returns, added forms, or to access your completed return. Read terms carefully before submitting.
Look for clear language about which forms and credits are included for free. If a product asks you to upgrade for a basic tax situation, compare other providers first.
Where low-income and special groups can get help
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs are still valuable resources. They provide free preparation for qualifying taxpayers.
Many community organizations, libraries, and colleges host VITA sites during tax season. Call ahead or check the IRS locator to confirm online or in-person availability.
Case study: Choosing an option after the IRS Discontinues Free Direct File Tool
Maria is a single filer with two W-2s and a standard deduction. She expected to use the IRS Direct File tool but learned it was discontinued.
She compared Free File partner options and a commercial free tier. The Free File partner supported her simple W-2 return at no cost and included state filing for free. Maria created an account, completed the guided interview, and e-filed in under an hour.
If Maria had itemized deductions or rental income, she would have chosen a paid software tier or a paid preparer to handle the added complexity.
Final checklist after IRS Discontinues Free Direct File Tool
- Confirm eligibility for Free File or volunteer assistance.
- Compare multiple providers for pricing and included forms.
- Use multi-factor authentication and strong passwords for accounts.
- Keep copies of your filed return and e-file confirmation.
- Contact a tax professional if your return is complex or you face an audit risk.
Although the IRS no longer offers a single Direct File tool, taxpayers still have practical options to file for free or at low cost. Assess your situation, compare alternatives, and pick the one that balances price, ease, and accuracy for your needs.
