What many taxpayers don't realize, however, is that the IRS actually offers some free preparation and filing tools that can be used in most common tax situations.
One of these programs, known as Direct File, makes it possible for some taxpayers to file both their federal and state taxes for free. However, with recent talks of potentially eliminating the program, taxpayers should be aware of possible changes on the horizon so they can prepare accordingly.
Specifically, IRS Direct File is a program that allows eligible taxpayers to prepare and file their federal returns (and state returns, in participating states) entirely online with the IRS. Rather than using a third-party preparation software (such as TurboTax), filing directly with the IRS can save taxpayers time and hassle.
The Direct File program first launched during the 2024 tax season as a pilot program, with its formal debut occurring shortly later. During the pilot, more than 140,000 taxpayers used the program to claim nearly $100 million in refunds.
By the 2025 filing season, an additional 13 states participated in the program, bringing the total for free state filing up to 25 states. For this tax year, the program was also expanded to accommodate for more unique tax situations.
Many taxpayers with common tax situations can use Direct File, including those with basic W-2 wage income, Social Security income and even unemployment. Likewise, taxpayers claiming some common credits (such as the Earned Income Tax Credit and Child Tax Credit) can use Direct File.
However, this program may not be suited for all taxpayers. Specifically, those with income from gig work and those who choose to itemize their deductions are not eligible to use Direct File. Taxpayers filing outside one of the 25 participating states also are not eligible to use the program. You can check out a list of those participating states here.
It's also important to understand the difference between IRS Direct File and another program known as Free File. Specifically, whereas Direct File is offered directly through the IRS, Free File is a tax-filing option offered through third-party companies. Both allow for free tax preparation and filing (for eligible taxpayers), but Free File can be a suitable option for taxpayers who don't live in a state that participates in Direct File.
Although IRS Direct File has helped many taxpayers prepare and file their taxes for free since its debut in 2024, there are talks of the program being eliminated. Specifically, new provisions in the Trump administration's tax reconciliation bill include a shift to using private sector tax preparation services in lieu of the existing program. Essentially, Direct File would be combined into the existing Free File program to streamline it — but no formal changes or decisions have been made as of October 2025.
The current deadline to use Direct File for the 2024 tax year is October 15, 2025 for those who filed for an extension — so taxpayers still have the opportunity to take advantage of it before any actual changes are made. In the meantime, though, the future of the program for upcoming tax years remains somewhat uncertain.
If you've been using IRS Direct File or had plans to begin using it for this tax year, you might be wondering what these changes could mean for you. For starters, if you have yet to file your taxes for 2024, you can still do so using Direct File (assuming you meet the qualification requirements).
However, if you were planning on using it to file your taxes for 2025, you may need to hold off. In fact, you might consider checking to see if you're eligible for the Free File program, which could still allow you to prepare and file your taxes at no cost with a third-party service.
For more information on Free File and to look for other ways to file, please visit IRS.
Tax planning is challenging enough without having to worry about whether the platform you use to file will be eliminated. The good news? Even if Direct File comes to an end, it sounds like there are plans to replace it with something similar that will still allow for free tax filing.
In the meantime, if you have questions or need more guidance when it comes to your taxes, your best bet is to consult with an experienced tax professional.