Is IRS Direct File Going Away? What the Trump-Backed Budget Means for the Free Service

Direct File allows taxpayers to file their returns directly to the agency for free. IRS/CNET IRS Direct File has been in the crosshairs of the second Trump administration for the past few months, but the latest details of the GOP's budget proposal have made its potential demise a lot more concrete. Direct File is an online program offered by the IRS that lets you file your income tax returns directly to the agency for free, instead of paying for an accountant or paid tax service like H&R Block or online tax software. Spinning out from the Inflation Reduction Act and signed into law by former President Joe Biden in 2022, the program launched in 12 states during the 2024 tax season. The IRS later said that it was used by 140,000 people during that pilot run. It expanded to 25 states for the 2025 tax season, but despite its "enhanced" offerings, Direct File was already under a cloud of uncertainty as it became a target for President Donald Trump's incoming administration and its extens ... Read full article.