The IRS recently discontinued its Direct File tool, leaving many taxpayers wondering how to file their returns for free or at low cost. This guide explains practical alternatives, how to choose the right option, and steps you can take today to prepare your return safely.
IRS Discontinues Free Direct File Tool: What happened?
The IRS paused the Direct File program after a pilot phase. The agency said it would reassess its approach before offering a direct federal filing service again.
For taxpayers, that means the government no longer provides a built-in, nationwide free online filing portal. Filers should pick from other IRS-supported or private options to complete and submit returns.
Free and low-cost alternatives now that the IRS Discontinues Free Direct File Tool
Here are the main alternatives for filing federal taxes without Direct File. Each option fits different situations based on income, complexity, and comfort with DIY tax work.
IRS Free File (partnered software)
IRS Free File remains available for many taxpayers through IRS partner companies. Eligibility rules vary by provider, but many filers with adjusted gross income below a set threshold can use brand-name software for free.
- Who it suits: Simple returns, W-2 wages, student loan interest, standard deduction filers.
- How to start: Visit the IRS Free File page and choose a partner that matches your income and state needs.
Free File Fillable Forms
Free File Fillable Forms are electronic versions of IRS forms for taxpayers who prefer to prepare returns themselves. This option is free for anyone but requires tax knowledge and does not provide guidance.
- Who it suits: Technically skilled filers and tax preparers who do not need interview-style help.
- Limitations: No step-by-step help, no payroll or deduction guidance.
Commercial tax software (paid and free tiers)
Major vendors such as TurboTax, H&R Block, and TaxAct offer free tiers for simple returns and paid tiers for more complex situations. These services include interviews, error checks, and e-file support.
- Who it suits: Filers who want guided help and audit support options.
- Tip: Compare prices for state returns and add-ons before choosing.
Volunteer programs: VITA and TCE
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free in-person or virtual help for eligible taxpayers. Volunteers are trained to prepare basic returns and often provide assistance in multiple languages.
- Who it suits: Low-to-moderate income taxpayers, elderly filers, and those who need in-person help.
- How to find: Use the IRS locator for VITA/TCE sites and appointment details.
Paid tax professionals
CPAs and enrolled agents handle complex returns, business income, and tax planning. This is the most expensive option but is appropriate when returns are complicated or audit risk is higher.
- Who it suits: Small business owners, multiple-state filers, those with investments, or past audit issues.
- What to expect: Upfront fees, possible consultations, and detailed record-keeping requests.
How to choose the best alternative
Decide based on return complexity, comfort with tax rules, and cost. Use this checklist to match your needs to a filing option.
- Simple W-2 income, no itemized deductions: IRS Free File or free tier software.
- Itemized deductions, rental income, investments: Paid software or a tax pro.
- Low income or language assistance needed: VITA/TCE.
- Comfortable preparing tax forms manually: Free File Fillable Forms.
Also consider state return costs, refund timing, and whether you want audit support or a preparer’s guarantee.
Security and filing tips after the IRS Discontinues Free Direct File Tool
Secure filing is more important than ever. Use these practical steps to reduce fraud and mistakes.
- Use strong, unique passwords and enable two-factor authentication for online accounts.
- Check that the site uses HTTPS and has clear contact information.
- Keep digital copies of W-2s, 1099s, and supporting documents for at least three years.
- File early to reduce the risk of identity theft related to tax refunds.
Small real-world example
Case study: Javier is a single teacher with a W-2, student loan interest, and a small HSA contribution. After the Direct File option ended, he checked IRS Free File partners and used a free branded software matched to his income. The software guided him through education credits and submitted both federal and state returns electronically.
The process took one afternoon and cost Javier nothing, illustrating that many straightforward filers still have free, secure options.
Free File Fillable Forms are available to all taxpayers but do not include step-by-step guidance. They are best for people comfortable reading IRS forms and instructions.
Next steps if you need to file now
Gather your documents: W-2s, 1099s, mortgage interest, and any receipts for deductions. Compare two or three filing options before deciding.
If you are unsure, look for local VITA/TCE sites or schedule a short consultation with a tax preparer to avoid costly mistakes.
Even though the IRS Discontinues Free Direct File Tool, several reliable pathways remain. Choosing the right option depends on your tax complexity, budget, and comfort with DIY tools.