IRS eliminates Direct File. How can I file my taxes for free now?

Core Insights - Direct File, a free IRS tax-filing tool, has been shut down less than two years after its launch due to shifting priorities and low participation rates [1][4][6] - The program was initially seen as a consumer win, allowing taxpayers to file federal taxes without commercial software, but ultimately faced high costs and underutilization [1][5][6] Summary by Sections Overview of Direct File - Direct File was created during the Biden administration as a no-cost filing platform, allowing eligible taxpayers to file directly through an IRS-operated online portal [2][17] - It operated alongside IRS Free File, which provides free access to tax-prep software for individuals with adjusted gross incomes of $84,000 or less [3][11] Reasons for Elimination - The IRS decided to terminate Direct File following a Treasury report that highlighted high costs and low participation, with only 140,803 users in its first year compared to initial estimates of 5 to 25 million [4][6] - The cost of the pilot program was initially reported at $24.6 million but was later revised to $31.8 million due to uncounted expenses, resulting in a processing cost of approximately $225 per return, significantly higher than projected [5][7] Political Reactions - Lawmakers expressed mixed reactions to the program's termination, with Republican lawmakers supporting the decision as a cost-saving measure, while Democrats criticized it as shortsighted [8][9] Future of Tax Filing Options - With Direct File discontinued, taxpayers can still utilize IRS Free File and other free options, which cater to different income levels and tax situations [10][11] - The IRS is focusing on strengthening Free File and similar partnerships rather than developing a new government-built tax tool in the near future [18]