The IRS discontinued the Free Direct File tool. If you used it or expected to use it, this guide explains practical alternatives, how to choose the right option, and step-by-step actions to file your federal tax return now.
Why the IRS Discontinues Free Direct File Tool
The IRS paused its development of a government-run direct filing tool after testing and policy review. The agency cited concerns about costs, security, and the best way to serve taxpayers.
That change does not stop you from filing. It only ends the expectation of a single IRS web app that lets everyone file directly without third-party software.
What Taxpayers Can Use Now Instead
Several reliable alternatives exist so you can still file accurately and affordably. Pick the option that matches your comfort level with taxes and your return’s complexity.
- Free File Fillable Forms (IRS) — A set of electronic fillable federal tax forms offered by the IRS. Best for people comfortable preparing their own return.
- Commercial Free Versions — Major tax software companies often offer free editions for simple tax situations (Form 1040 only, limited credits). Check eligibility before starting.
- Volunteer Programs (VITA/TCE) — Free in-person or virtual help for qualifying taxpayers: low-to-moderate income, limited English proficiency, seniors, and others.
- Paid Tax Software or Professionals — For complex situations (investments, self-employment, multi-state returns). Paying can reduce risk of mistakes and offer audit support.
- Paper Filing — Still valid but slower. Use certified mail or trackable methods if you choose to mail returns.
How These Options Compare
- Cost: Varies from free (VITA, Free File Fillable) to paid software or tax preparers.
- Complexity: Fillable forms and paper filing require more tax knowledge than guided software.
- Speed: E-file through software or IRS systems is fastest for refunds.
- Support: Volunteer clinics and paid preparers provide help; fillable forms do not include tax advice.
Step-by-Step: Filing Now Without the Direct File Tool
Follow these steps to pick the best route and complete your return efficiently.
1. Gather Documents
Collect W-2s, 1099s, last year’s return, receipts for deductions, and ID information. Having everything ready reduces errors and rework.
2. Choose an Option
Match your situation to an option:
- Simple return and comfortable with forms: Free File Fillable Forms or commercial free edition.
- Low income, elderly, or limited English: Find a VITA or TCE site.
- Complex taxes: Use paid software or a qualified tax professional.
3. Prepare and Double-Check
Use built-in checks in software or review line-by-line if doing fillable forms. Verify Social Security numbers, bank routing for direct deposit, and identity information.
4. File and Keep Records
E-file for speed and confirmation. Save copies of your return, supporting documents, and the e-file confirmation for at least three years.
You can use IRS Free File Fillable Forms regardless of income if you are comfortable preparing your own return. It provides electronic forms but does not offer step-by-step tax advice.
Free and Low-Cost Alternatives Explained
Here are practical details on the most common alternatives after the discontinuation of the direct file tool.
Free File Fillable Forms
These are electronic versions of IRS forms you complete yourself. They validate math and let you e-file but do not guide you through tax law questions.
Commercial Free Editions
Companies like TurboTax and H&R Block typically offer free tiers for simple returns. Eligibility rules change each year, so confirm that credits or forms you need are included.
Volunteer Tax Assistance
VITA and TCE programs provide free help from trained volunteers. Use the IRS locator tool or phone numbers to find nearby sites and check required ID or documentation.
Real-World Example
Maria is a public school teacher with a straightforward W-2, student loan interest, and the standard deduction. She chose a commercial free edition and completed her return in one session. She e-filed and received her refund within three weeks.
In a second example, Ahmed is self-employed with a small consulting business. He used a paid tax software package that supports Schedule C and quarterly estimates. The cost was small compared with the time and risk saved by using guided software.
Tips to Avoid Problems
- Confirm free eligibility before entering sensitive data.
- Use reputable websites (look for IRS.gov and known software companies).
- Beware of impostor sites—verify the URL and security certificate.
- Keep records and proof of submission for at least three years.
Although the IRS discontinued the Free Direct File tool, taxpayers have several good options. Choose based on your tax complexity, need for support, and comfort with online forms.
For the latest program details and links to resources, visit the IRS website or contact your state tax agency. If in doubt, a qualified tax professional can help you pick the safest, most cost-effective filing method.