IRS Discontinues Free Direct File Tool: What That Means
The IRS has ended its Free Direct File tool. If you used that service, you may be wondering how to file your federal tax return this year without extra cost or risk.
This article explains practical, current alternatives and gives steps to choose the right option for your situation.
Who Is Affected by the IRS Discontinues Free Direct File Tool
Anyone who previously planned to use the IRS Direct File tool will need a new way to prepare and submit federal taxes. The change affects both simple filers and those who used the tool for basic credits and standard forms.
State filing rules are separate. Some states offer their own free filing portals; check your state tax agency for details.
Primary Alternatives After IRS Discontinues Free Direct File Tool
Here are the main alternatives taxpayers can use now that the IRS Direct File tool is discontinued. Each option fits a different comfort level and return complexity.
1. Commercial Online Tax Software
Popular providers include TurboTax, H&R Block, TaxAct, and FreeTaxUSA. They offer a range from free editions for simple returns to paid tiers for itemized or business returns.
Benefits include guided questions, error checks, and e-file submission. Costs vary by features and state return filing.
2. IRS Free File Fillable Forms and Other IRS Resources
The IRS still provides Free File Fillable Forms, which are electronic versions of paper forms. These are best for people comfortable completing tax forms without guided prompts.
Use the IRS website for forms, publications, and an online account to check your refund status and tax records.
3. Volunteer and Community Programs
Programs such as VITA (Volunteer Income Tax Assistance) and AARP Tax‑Aide provide free in-person or virtual help for eligible taxpayers. They assist with basic returns, credits, and e-filing.
Eligibility frequently depends on income, age, or disability; search for local VITA/AARP sites early in tax season.
4. Tax Professionals
Certified public accountants (CPAs), enrolled agents, and tax preparers handle complex returns and audits. Fees vary widely but can be worth the service for business owners or those with unusual tax situations.
Ask upfront about the fee structure and whether e-file is included.
5. Paper Filing and State Options
You can still download IRS forms, complete them, and mail your return. Paper filing takes longer to process but costs nothing beyond postage.
Some states provide their own free online filing systems for residents; check your state tax agency website.
How to Choose the Right Alternative
Follow these steps to decide which option fits your needs when the IRS Discontinues Free Direct File Tool affects you.
- Assess return complexity: simple W-2, credits, or itemized and business income.
- Check your comfort with tax forms: do you want guided help or can you complete forms directly?
- Compare costs: free editions, paid tiers, or professional fees.
- Verify security: use reputable providers and check for HTTPS and privacy policies.
- Consider in-person help if you have language or accessibility needs.
Checklist: What to Have Ready Before Filing
Gather these items to speed filing and reduce mistakes.
- Social Security numbers (or ITINs) for everyone on the return
- W-2s, 1099 forms, and documentation of other income
- Records for deductions and credits (childcare, education, mortgage interest)
- Bank account and routing number for direct deposit
- Previous year’s tax return for reference
The IRS still provides free electronic options like Free File Fillable Forms and many states have their own free filing portals. Volunteer programs can help eligible taxpayers file for free.
Real-World Example: Choosing a New Filing Path
Case study: Javier is a single filer with a W-2 and standard deduction. He previously used the IRS Direct File tool. This year he compared free online tiers from major providers.
Outcome: Javier chose a free commercial free edition that supports his simple return and offers guided help plus e-file. He saved time and verified his refund schedule online.
Costs and Security When the IRS Discontinues Free Direct File Tool
Costs depend on the provider and the complexity of your return. Basic returns are often free, but state filing or additional forms may cost extra.
Protect your information by using official websites and avoiding emailed links. Verify the domain and read provider reviews before entering personal data.
Bottom Line: Practical Steps After the Change
If the IRS Discontinues Free Direct File Tool and you need a new method, start by assessing your return complexity and comfort level. Compare free and low-cost options, check volunteer programs, and consider professional help for complicated situations.
Prepare your documents early and choose a secure platform. With planning, most filers can find a suitable and affordable way to file their federal taxes.
