IRS ends direct file — here’s how Americans can still file taxes for free
The IRS has discontinued its Direct File tool due to high costs and low usage, but free tax filing options remain available.Summary
The Internal Revenue Service (IRS) has ended its Direct File program, a free tax-filing website launched in 2024, less than two years after its inception. While approximately 300,000 taxpayers in 25 states utilized the service during the 2024 tax year, a Treasury Department report deemed it too costly and underused, leading to its shutdown. Initially praised for its user-friendly interface – allowing users to upload W-2 details and directly submit returns – the program ultimately cost around $225 per return, significantly exceeding the projected $10-$15.50.
Political reactions were divided, with Republican Congressman Adrian Smith supporting the decision and Democratic senators like Chris Coons and Elizabeth Warren criticizing it as a benefit to private tax-prep companies. The program’s initial pilot cost $24.6 million, rising to $31.8 million with added expenses, far short of the expected 5-25 million users.
Despite the end of Direct File, Americans can still file their taxes for free through IRS Free File (for those earning under $84,000), Free Fillable Forms, and the Volunteer Income Tax Assistance (VITA) program, which offers free help from trained volunteers, particularly for low-income individuals.
(Source：The Economic Times)
