Core Insights - The tax filing options for 2026 have decreased from five to four due to the cancellation of the Direct File program by the Trump administration, which was favored by 90% of its users in 2024 [2] Group 1: Free Filing Options - IRS Free File allows eligible taxpayers to file their federal and state tax returns for free, with an adjusted gross income limit of $89,000 [4][5] - The Free File program provides guided support through online tax questions, ensuring accurate and error-free returns [6] - The IRS Volunteer Income Tax Assistance (VITA) program offers free in-person and online tax preparation assistance for individuals earning $67,000 or less, as well as for disabled individuals and those with limited English proficiency [8][9]

Core Insights - The IRS Direct File program, which provided free tax software to taxpayers in 25 states, will not be available for the upcoming filing season due to its low utilization and cost concerns [1][2][7] - The program cost approximately $41 million to operate during the 2024 tax year, with only 0.2% of tax returns filed using it [2] - Despite low usage, a survey indicated that nearly three-fourths of tax filers were interested in using Direct File, and 94% of users rated their experience positively [3] Program Suspension - The Direct File program has been suspended as part of a broader initiative to explore more effective alternatives, with Treasury Secretary Scott Bessent stating that the private sector could provide better solutions [1][7] - An IRS task force was created to assess the costs associated with Direct File and potential replacements, following directives from the "One Big, Beautiful Bill" [1] Taxpayer Options - For the 2026 filing season, other free federal tax preparation programs will still be available, including the IRS Free File program for taxpayers with an adjusted gross income of $84,000 or less [5][8] - Additional options include the Volunteer Income Tax Assistance program for individuals earning $67,000 or less, and Tax Counseling for the Elderly for those aged 60 and above [8]

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]

Core Points - The Trump administration has ended the IRS Direct File program, which was designed to simplify tax filing for Americans and save costs [1][4] - Critics argue that Direct File was costly to develop and had low participation rates, with only 296,531 returns filed in its second year, representing less than 0.5% of total returns [4][5] - Former Treasury Secretary Janet Yellen estimated that the average American taxpayer spent $270 and 13 hours filing their tax return [2] Group 1: Direct File Program Overview - Direct File was launched as a pilot in 2023 for 12 states and expanded to 25 states in 2024 [1] - The program cost taxpayers at least $41 million, or approximately $138 per return, which critics claim understates the true costs [5] - Participation in Direct File was the lowest among free tax preparation programs, with just under 141,000 returns filed in the pilot year [4] Group 2: Alternatives to Direct File - Americans will need to use paper returns or other software options, with low-cost software providers available [7] - Free options include IRS Free File, which offers free tax preparation software for eligible taxpayers with an AGI of $84,000 or less [8] - Volunteer Income Tax Assistance and AARP Foundation's Tax-Aide provide free tax help, assisting nearly 1.7 million taxpayers in 2024 [8]

If you need more time to do your taxes, you can file a tax extension. Almost anyone can file, regardless of income or reason, but there are key dates and implications to keep in mind. Here’s what you need to know. What is a tax extension? A tax extension is a request you file via an IRS form that extends the filing deadline for your tax return. Note that this extension applies to your tax paperwork, not your tax payment. Put another way: Although a tax extension extends the due date for filing tax retur ...

Core Insights - The IRS Direct File option for free tax filing will no longer be available starting January 2026, but several alternatives for free tax filing remain available [1] Group 1: Free Tax Filing Options - IRS Free File is available for taxpayers with an adjusted gross income (AGI) of $84,000 or less, providing access to free tax preparation software through the Free File Alliance [3][17] - Free versions of popular tax software like H&R Block, TurboTax, TaxSlayer, and TaxAct are available, typically best for straightforward tax situations [5] - Volunteer Income Tax Assistance (VITA) offers free tax preparation for low- and moderate-income taxpayers, with eligibility requirements including an income of $67,000 or less [6][7] - Tax Counseling for the Elderly (TCE) provides free tax preparation services to older taxpayers, primarily those aged 60 and above, focusing on simple tax returns [9][10] - MilTax offers free tax filing for military members and veterans, with no income limits and specialized support for military-related tax issues [10][11] Group 2: Limitations and Additional Information - The IRS previously offered free, fillable forms online, but these are no longer available for electronic filing [12] - Some free filing options may involve additional fees for state tax returns [12] - Taxpayers must still file a federal tax return even if they have paid estimated or self-employment taxes quarterly [14]