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Rumors of the demise of the IRS’s free tax filing program Live file It’s done In circulation since Tax Day 2025.
On Monday, the IRS officially ended the program, at least for 2026.
In a letter to 25 states supporting the free deposit program, the agency said, “IRS direct file will not be available in the 2026 filing season,” and “no launch date has been determined for the future.” Nextgov. The IRS did not immediately respond to a request for comment.
In a Statement on WednesdaySenate Finance Committee member Ron Wyden, a Democrat from Oregon, criticized the decision to shut down the Live File program: “The Trump administration is acting like a laser-guided weapon targeting any useful public service that saves Americans time and money. The only thing Trump accomplishes by doing this is stealing from working-class taxpayers for the profits of giant, rent-seeking tax software companies.”
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The free Live File software has been successfully used by hundreds of thousands of taxpayers and has been growing with… New features Since its launch in 2024. This year, Direct File expanded the number of countries included in the program from 12 to 25 and Added support for several new tax exemptions and tax reporting statuses.
According to A May file a report from the IRSthe agency accepted 296,531 tax returns filed with Direct File during the 2025 tax filing season, more than double the amount in 2024. This year, 94% of people who used Direct File described their experience with the program as “excellent” or “above average.” The New Jersey Office of Innovation calculated that approximately 8,500 state residents who used Direct File in 2025 Saving a total of $1.3 million in tax filing costs (about $153 per file).
IRS Direct File was limited to filers with simple tax situations who claimed the standard deduction (as opposed to itemized deductions), and did not include support for most 1099 formsOr business, rental or miscellaneous income. Although the software is still far from being the best online tax service, other tax software services have faced criticism for it. Increased filing costswhich can reduce your tax refund.
However, for now, the IRS will continue to offer some Free deposit options For eligible taxpayers in 2026.
Free IRS File It is limited to tax filers with an adjusted gross income of $84,000 or less and relies on special tax software from businesses in Free File Alliance. For experienced tax filers, Free fillable forms Submit online tax forms that taxpayers can complete independently without assistance.