IRS Discontinues Free Direct File Tool What Taxpayers Can Use Now

IRS Discontinues Free Direct File Tool: What Changed

The IRS discontinued its free Direct File tool. The tool was an in-house option that let some taxpayers file federal returns directly with the IRS website.

This change affects anyone who expected to use that specific IRS service. It does not end other free or low-cost filing choices.

What Taxpayers Can Use Now After IRS Discontinues Free Direct File Tool

There are several practical alternatives to the discontinued Direct File tool. Options vary by income, tax complexity, and preference for in-person help or online tools.

Free File Through IRS Partners

IRS Free File is a partnership program with private tax software companies. Eligible taxpayers use partner software to file federal returns for free.

Eligibility typically depends on adjusted gross income limits and other rules. Check current IRS Free File rules early in the season to confirm your eligibility.

Free File Fillable Forms

Free File Fillable Forms are electronic versions of IRS forms for taxpayers of any income level. They are best for people comfortable preparing their own returns.

These forms do not include guided interviews or tax help and are not ideal for complex returns or those who need step-by-step support.

Volunteer Income Tax Assistance and Tax Counseling for the Elderly

VITA and TCE programs provide free in-person tax help for qualifying taxpayers. Volunteers prepare returns at community sites and can assist with common credits and forms.

These services often help taxpayers with low to moderate income, disabilities, or limited English proficiency.

Commercial Tax Software and Online Options

Many commercial tax providers offer free tiers for simple returns and paid tiers for more complex filings. These services include step-by-step guidance and often audit support.

Popular providers allow e-file submission and direct deposit for refunds, and they may offer state filing for a fee or included in higher tiers.

Paid Preparers and Certified Public Accountants

If your return is complex—multiple state filings, rental properties, self-employed income, or many deductions—using a paid preparer or CPA can be time-saving and reduce risk of errors.

Get a clear fee estimate before work begins and request an itemized invoice for the services provided.

How to Choose the Right Option Now That IRS Discontinues Free Direct File Tool

Match your situation to the filing option that fits your skills, complexity, and budget. Below are quick decision points to guide you.

• If your income is below the Free File threshold: try IRS Free File partner software.
• If you are comfortable doing taxes yourself and your return is simple: use Free File Fillable Forms or a free software tier.
• If you prefer in-person help: look for VITA/TCE sites nearby.
• If your return is complex: consider reputable commercial software or a CPA.

Security and Fraud Tips

Only file through IRS-authorized e-file providers or the official IRS Free File portal. Watch for phishing emails claiming to be the IRS.

Use strong, unique passwords and enable two-factor authentication where possible. Do not share your Social Security number by email.

Step-by-Step: Filing After the IRS Discontinues Free Direct File Tool

Follow these simple steps to pick and use an alternative filing method this tax season.

1. Gather documents: W-2s, 1099s, receipts, last year’s return.
2. Decide the filing method: Free File partner, Fillable Forms, VITA/TCE, commercial software, or paid preparer.
3. Check eligibility for Free File or VITA/TCE before you start.
4. Complete the return and e-file if possible to get a faster refund.
5. Keep copies of your filed return and confirmation for at least three years.

Example: Choosing Between Free File and Paid Software

Case study: Javier is a teacher with one W-2, a small student loan interest deduction, and standard credits. His AGI qualifies for Free File partner software.

Javier used a Free File partner, completed the guided interview in 30 minutes, and e-filed. He received his refund by direct deposit in under three weeks.

Common Questions After IRS Discontinues Free Direct File Tool

Will I still be able to file electronically? Yes. The IRS continues to accept electronically filed returns through authorized providers and the Free File program.

Will state returns be free? State filing is separate. Some providers include state returns for free; others charge a fee. Check the provider’s state policy before filing.

Final Practical Tips

• Start early to avoid last-minute mistakes and identity theft attempts.
• Compare fees and support levels if choosing commercial software or paid preparers.
• Keep digital and paper copies of your return and all supporting documents.

Although the IRS discontinued the Direct File tool, taxpayers still have multiple secure and often free ways to file federal returns. Choosing the right path depends on your income, comfort level, and return complexity.