Rumors of the demise of the free IRS tax filing software Direct File have been circulating since Tax Day 2025.
On Monday, the IRS officially ended the program, at least for 2026.
In a letter to 25 states that supported the free filing program, the agency said, "IRS Direct File will not be available in Filing Season 2026," and "no launch date has been set for the future," per Nextgov. The IRS did not immediately respond to a request for comment.
In a statement on Wednesday, Senate Finance Committee Ranking Member Ron Wyden, a Democrat from Oregon, blasted the decision to kill the Direct File program: "The Trump administration operates like a laser-guided weapon aimed at any useful public service that saves Americans time and money. The only thing Trump accomplishes by doing this is stealing from working class taxpayers to pad the profits of giant, rent-seeking tax software companies."
Don't miss any of our unbiased tech content and lab-based reviews. Add CNET as a preferred Google source.
The free Direct File program was successfully used by hundreds of thousands of taxpayers and had been growing with new features since its launch in 2024. This year, Direct File expanded the number of states included in the program from 12 to 25 and added support for several new tax credits and tax reporting situations.
According to a May report from the IRS, the agency accepted 296,531 tax returns filed with Direct File during the 2025 tax filing season, more than twice the amount in 2024. This year, 94% of people who used Direct File described their experience with the software as "excellent" or "above average." The New Jersey Office of Innovation calculated that the roughly 8,500 state residents who used Direct File in 2025 saved a total of $1.3 million in tax filing costs (about $153 per filer).
IRS Direct File was limited to filers with simple tax situations who claimed the standard deduction (as opposed to itemized deductions), and it didn't include support for most 1099 forms, business or rental income, or miscellaneous income. Although the program was still far from being a top online tax service, other tax software services have faced criticism for increasing costs to file returns, which can cut into tax refunds.
That said, for now, the IRS will still continue to offer some free filing options to eligible taxpayers in 2026.
IRS Free File is limited to tax filers with adjusted gross incomes $84,000 or less and relies on proprietary tax software from companies in the Free File Alliance. For experienced tax filers, Free Fillable Forms offer online tax forms that taxpayers can complete independently without assistance.
English (US) ·