Despite some expected changes like the planned shutdown of the Direct File pilot program, the IRS has currently some free options available and it is requesting feedback (see links at the bottom of this blog).
Free File program
- This program is a public-private partnership between the IRS and several tax software companies that provide their online products for free to eligible taxpayers.
- For the 2025 tax filing season, you can use IRS Free File guided software if your adjusted gross income (AGI) is $84,000 or less.
- In the past, there were significant issues with this program as some of these tax software companies were advertising falsely their services as “free” or misleading customers on eligible limitations or charging fees (for example, Intuit had a $141 million settlement for misleading 4.4 million customers in 2022).
Direct File program
- This is a web-based service offered directly by the IRS for federal tax filing in select states.
- It is available to taxpayers with relatively simple tax situations in 25 participating states for the 2025 tax season.
- The issue with this program is that it might end in 2025. Also, there are many limitations due to the State and local tax filings.
Other free options to consider:
- Volunteer Income Tax Assistance (VITA): Offers free tax preparation for people who generally make $67,000 or less, persons with disabilities, and taxpayers with limited English language skills.
- MilTax: A Department of Defense program that provides free tax preparation and e-filing software for federal and some state tax returns for military members and some veterans.
Even if it feels contradictory with its future plans, the IRS is requesting feedback on free filing options (the fact of the short window to provide the feedback is indicative of the lack of a serious plan on these options).
IRS new release – IRS asks for public input on free tax filing options to inform congressional report
Free Online Tax Preparation Survey (Ending Sept 5, 2025) – Give your opinion on the free filing options
