If you’ve been using the IRS’s Direct File program to file your taxes for free, brace yourself — it’s going away in 2025. Yep, the free, government-run online tax filing service that made it easy to skip expensive software and file directly with Uncle Sam is shutting down.
The silver lining? There are still plenty of ways to file your taxes for free or low cost without getting upsold on pricey add-ons. In this guide, we’ll cover why Direct File is ending, the best alternatives, and some expert tips to make tax season painless.
IRS Direct File Is Ending
| Topic | Details |
|---|---|
| Program Ending | IRS Direct File ends in 2025 due to legislative changes. |
| Why Ending? | Part of the “Big Beautiful Bill” replacing it with a public-private partnership model. |
| Best Free Option | IRS Free File (for taxpayers with AGI ≤ $84,000) |
| Other Free Options | VITA/TCE in-person programs for qualifying taxpayers |
| Commercial Options | FreeTaxUSA®, TaxAct, TurboTax (varies in cost) |
| Deadline | April 15, 2025 (federal filing) |
| Stats | Over 140 million Americans file taxes annually; ~70% qualify for free filing under IRS Free File guidelines |
| Source | IRS, Kiplinger, Investopedia, Washington Post |
IRS Direct File’s shutdown might feel like a step backward, but free tax filing isn’t gone. IRS Free File, VITA/TCE, and even some commercial services still make it possible to file without breaking the bank.
Plan early, pick your tool wisely, and you’ll get through tax season stress-free — maybe even with a bigger refund in your pocket.
A Quick History of IRS Direct File
The IRS launched Direct File in 2024 as a pilot in 12 states, expanding to 25 states in 2025. It was meant to give taxpayers a simple, no-cost alternative to commercial software.
In its short life, Direct File:
- Processed over 400,000 federal returns in its pilot year.
- Earned high satisfaction scores — 90% of users said they’d use it again.
- Avoided upselling, ads, or hidden fees.
But in mid-2025, Congress decided to shut it down, citing cost concerns and preferring a public-private model.
Why Is IRS Direct File Ending?
The shutdown comes as part of the “Big Beautiful Bill”, which would phase out Direct File within 30 days of the law passing. Lawmakers argue:
- Private companies can offer similar services more efficiently.
- The IRS should focus on enforcement and taxpayer support, not software development.
Critics say:
- The change may push taxpayers toward costly commercial providers.
- It removes a trusted, ad-free, government option.
Who Will Feel the Change Most?
This impacts anyone who:
- Likes free, ad-free federal filing.
- Prefers government-run over private platforms.
- Wants no upselling for add-ons.
Best Alternatives to IRS Direct File
1. IRS Free File (Guided Software)
Best for: Taxpayers with AGI ≤ $84,000
Cost: Free federal; some providers include free state filing.
Pros: User-friendly, IRS-vetted partners, secure.
Cons: Limited providers; may not include all state returns.
2. Free File Fillable Forms
Best for: Confident DIY filers.
Cost: Free.
Pros: Available to all income levels; no ads.
Cons: No guidance; federal only.
3. VITA (Volunteer Income Tax Assistance) & TCE (Tax Counseling for the Elderly)
Best for:
- Income ≤ $64,000
- Seniors
- People with disabilities or limited English
Cost: Free, with in-person help.
Pros: Human assistance; IRS-trained volunteers.
Cons: Appointment slots can fill fast.
4. Commercial Tax Filing Services
Examples:
- FreeTaxUSA®: Free federal, $14.99 state.
- TaxAct®: Often cheaper than TurboTax.
- TurboTax®: Smooth interface, but upselling is common.
Comparison Table
| Option | Cost | Ease of Use | State Filing | Support Level |
|---|---|---|---|---|
| IRS Free File | Free | Easy | Sometimes free | Online help |
| Fillable Forms | Free | Harder | No | None |
| VITA/TCE | Free | Moderate | Yes | In-person |
| FreeTaxUSA | Low | Easy | $14.99 | Online |
| TurboTax | Medium/High | Very Easy | Extra cost | Chat/phone |
Real-World Example
Meet Alex, a 29-year-old teacher in Ohio with a $50,000 salary:
- Before: Used Direct File, paid $0.
- After: Qualifies for IRS Free File via partner software; federal and Ohio state both free.
Result: Alex still files for $0, but through a partner site instead of IRS Direct File.
Comparing Your Tax Filing Options for 2025
| Option | Best For | Typical Cost | Key Features |
| Commercial Tax Software | People comfortable with DIY filing; more complex tax situations. | Free to $150+ | Guided walkthroughs, automatic calculations, audit support, help from tax professionals. |
| IRS Free File | Taxpayers with an AGI below a certain threshold ($84,000 for 2024). | Free | Uses partner software to file federal taxes for free; some partners offer free state filing too. |
| Volunteer Tax Assistance (VITA/TCE) | Low-to-moderate income taxpayers, seniors, persons with disabilities, or those with limited English proficiency. | Free | In-person help from IRS-certified volunteers. |
| Hiring a Tax Professional | Those with very complex situations, like small business owners or investors. | $200+ | Personalized advice, year-round tax planning, full-service filing. |
Tips to Maximize Your Refund (Legally)
- Claim all credits: Child Tax Credit, Earned Income Tax Credit, Education Credits.
- Track deductions: Student loan interest, educator expenses, charitable donations.
- Contribute to retirement accounts: 401(k) or IRA contributions can lower taxable income.
- Keep records: Receipts, mileage logs, and donation acknowledgments.
Myth vs. Fact
| Myth | Fact |
|---|---|
| Free tax filing is only for very low income. | 70% of taxpayers qualify for free federal filing via IRS partners. |
| The IRS keeps your refund if you file late. | You have three years to claim a refund. |
| All “free” software is really free. | Many commercial services charge for state returns or certain forms. |
State-Specific Note
Some states, like California, New York, and Massachusetts, offer their own free e-filing portals. Check your state’s Department of Revenue website — you might not need commercial software at all.
FAQ
Q1: Can I still file for free after Direct File ends?
A: Yes — IRS Free File and VITA/TCE remain free for qualifying taxpayers.
Q2: Is commercial tax software worth paying for?
A: Only if you have a complex return or need advanced support.
Q3: Can I file state and federal together for free?
A: Sometimes — check each IRS Free File provider’s details.
Filing Deadlines for 2025
- Federal: April 15, 2025
- Extension: File Form 4868 by April 15 (still must pay estimated taxes).
- State: Usually April 15, but verify with your state tax agency.
