IRS to End Free Tax Filing Tool: Will You Have to Pay Now?

The IRS plans to shut down Direct File, a free tax filing tool many Americans used in 2025.

That move could make filing taxes more expensive and harder for millions starting in 2026.

Let's breakdown the key points you should know.

What Was Direct File?

• A free program launched in 2024, expanded in 2025

• Let people file federal taxes directly through the IRS (no third parties)

• Used by nearly 300,000 taxpayers in 2025

• Available in 25 states

• 94% of users gave it top marks for simplicity and ease

Why Is It Ending?

• IRS Commissioner Bill Long said the program will not return

• His focus will shift to audits and system upgrades

• Some politicians called it too costly

• Others believe it helped level the playing field for taxpayers

What’s Left After It’s Gone?

• The IRS will still offer Free File — a partnership with private companies

• But it has income limits and state restrictions

• Not everyone qualifies

• Many will now need to pay for tax prep software or use professionals

How This Affects You

• Filing taxes could cost more

• People who used Direct File for free may need to start paying

• Low-income filers may feel this the most

• Fewer free, simple filing options means more frustration

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What Made Direct File Different

• Free for everyone, not just based on income

• No upselling or ads

• Directly from the IRS, no middleman!

• Easy to understand and complete

What to Do Next

• Check if you qualify for IRS Free File

• Start budgeting for possible tax prep costs in 2026

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