IRS Discontinues Free Direct File Tool What Can Taxpayers Use Now

IRS Discontinues Free Direct File Tool: What Changed

The IRS has discontinued the Free Direct File tool that was intended to let taxpayers file simple federal returns directly with the agency. Taxpayers who counted on a government-hosted, no-cost filing option now need to consider other methods for accurate, secure filing.

This guide explains practical alternatives, how to choose one, and steps to file safely.

Primary Alternatives After IRS Discontinues Free Direct File Tool

Several options remain for people who need low-cost or free ways to file taxes. Each has pros and cons depending on your income, filing complexity, and comfort level.

Use IRS Free File Partner Software

The IRS Free File program is a partnership with private tax software companies that offer free filing to qualifying taxpayers. These providers often have guided interviews and error checks similar to commercial products.

• Who it helps: taxpayers under specific AGI limits (check current IRS thresholds).
• Pros: guided forms, e-file, and often free state return offers.
• Cons: eligibility rules vary and may exclude higher-income filers.

Free Fillable Forms on the IRS Website

Free Fillable Forms is a no-frills online option for people comfortable entering tax data themselves. It’s best for those with straightforward returns who do not need step-by-step questions.

• Who it helps: people with tax knowledge and simple forms.
• Pros: free for all taxpayers, supports e-file on many forms.
• Cons: no guided help, not ideal for credits or complex schedules.

Volunteer Programs: VITA and TCE

The Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free preparation by IRS-certified volunteers. These services cover many low-to-moderate income taxpayers and people 60+ years old.

• Who it helps: low-income households, disabled, limited English speakers, seniors.
• Pros: in-person or virtual help, no fee for preparation.
• Cons: availability is seasonal and may require appointments.

Commercial Tax Software and Paid Preparers

Commercial products like TurboTax, H&R Block, and others remain available. Paid preparers and Certified Public Accountants (CPAs) provide personalized help and audit support.

• Who it helps: taxpayers with complex returns, business income, investments.
• Pros: guided tools, audit help, state filing options.
• Cons: cost varies, watch for upsells and add-on fees.

Paper Filing and Filing with a Tax Pro

Filing by mail remains an option. Some taxpayers prefer paper returns or using a tax professional who files on their behalf.

• Pros: no software cost, personal advisory from a tax pro.
• Cons: slower refunds, risk of mailing errors, preparer fees.

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

Pick a filing method based on return complexity, budget, and comfort with tax rules. Use this quick checklist to decide.

1. Assess complexity: W-2 only or itemized deductions and business schedules?
2. Check eligibility: Do you meet Free File partner income limits?
3. Consider cost vs. value: Is audit support or professional advice worth the fee?
4. Confirm security: Use reputable sites and protect personal data.

Steps to File Safely

Follow these practical steps whether you use free or paid services.

• Gather all documents: W-2s, 1099s, receipts, and prior-year return.
• Verify the website matches the provider listed by the IRS for Free File partners.
• Use strong, unique passwords and enable two-factor authentication on accounts.
• Save copies of e-file confirmations and submitted returns.

Real-World Example: Choosing an Alternative

Case: Maria is a single filer with a W-2, student loan interest, and the Earned Income Tax Credit. She expected a direct IRS filing option but learned it was discontinued.

What she did: Maria checked Free File partners and found one that accepts her income level. The guided software walked her through credit eligibility and e-filed her federal and state returns for free. She saved on preparer fees and received her refund via direct deposit.

Lesson: For many taxpayers with straightforward returns, Free File partners can be an effective replacement for the discontinued direct filing tool.

When to Contact a Professional

If you have rental income, business self-employment, multiple states, or complicated investment transactions, consider hiring a tax professional. The cost can be worthwhile to avoid errors and reduce audit risk.

Ask any preparer for credentials and a clear fee estimate before engagement.

Quick Comparison Table (Summary)

• Free File Partners: Best for eligible low- to moderate-income taxpayers who want guided help without cost.
• Free Fillable Forms: Best for tax-savvy filers who want a free, manual option.
• VITA/TCE: Best for low-income, elderly, or limited-English taxpayers needing volunteer help.
• Commercial Software/Paid Preparers: Best for complex returns needing guidance and audit support.

Final Steps After Filing

Keep your tax records for at least three years, monitor refund status through the IRS ‘Where’s My Refund’ tool, and respond promptly if the IRS requests additional information. These habits help protect you from identity theft and tax mistakes.

Use this guide to select the right option now that the IRS discontinues the Free Direct File tool, and file with confidence.