Summary
The IRS has ended its free Direct File tax program, starting with the 2026 tax filing season. This means that some Americans will now need to use private tax software, which could cost more money compared to the previous free service. The decision came after the Treasury Department found the program's costs too high.
Key Facts
- Direct File allowed free online tax filing for simple returns through the IRS.
- Nearly 300,000 tax returns were filed using Direct File in its last year.
- In 2025, an estimated 30 million Americans were eligible to use Direct File.
- The program cost about $138 per return, which was higher than private options.
- With Direct File gone, people may spend around $270 and 13 hours on filing taxes.
- Free tax filing options still exist, such as the IRS Free File program, but come with limits.
- Consumer groups criticized the decision to end Direct File, citing increased costs for taxpayers.
