The IRS is discontinuing its free Live File tool — here’s what taxpayers can use instead

The free tax preparation software used by thousands of taxpayers will no longer be available next filing season.

IRS Direct File, which provides free guided tax software directly from the IRS website to taxpayers in 25 states, has been suspended. Treasury Secretary Scott Bessent, who is also the current interim IRS commissioner, told reporters that there are “better alternatives” and “that the private sector can do a better job.”

Following an order from the “Big, Beautiful Bill,” an IRS task force was recently created to research direct file costs and the price of replacing the software. The bill called for the IRS to expand its use of Free File, a free federal tax preparation program distributed by private sector companies to taxpayers with annual income of $84,000 or less. The software is currently available to about 70% of taxpayers, but only about 2% of taxpayers used it in the last tax filing season.

Republican lawmakers have previously called for the direct file program to be repealed, arguing that it is “unauthorized and wasteful.” The program cost about $41 million to run during tax year 2024. About 0.2% of all tax returns — a total of 296,531 — were filed using Direct File during that year.

Although use of the program is low, the majority of taxpayers have a positive view of it. Nearly three-quarters of tax filers were interested in using Direct File, according to a December 2024 Urban Institute survey. Among taxpayers who used Direct File this year, 94% said their experience was “excellent” or “above average” in the 2025 IRS filing season report.

What other free registration options are there?

For the 2026 filing season, other federal programs will still offer a free guided filing experience for many taxpayers. Taxpayers will always have the option of filling out their returns electronically or on paper for free.

• Free IRS File
• This targeted tax program is available to taxpayers with adjusted gross income of $84,000 or less. It connects taxpayers with an IRS partner company, where taxpayers can complete a simple questionnaire that walks them through their federal tax returns.
• Voluntary Income Tax Assistance Program
• This program offers free tax counseling to individuals who earn $67,000 or less, have a disability, and speak limited English. The service provides taxpayers with a certified volunteer who can help them file their tax returns.
• Tax advice for seniors
• In addition to the Voluntary Income Tax Assistance Program, taxpayers age 60 or older can receive free tax assistance, especially for pensions and other retirement-related matters.
• Free special options
• Some private filing companies offer free filing options for taxpayers with certain income levels or occupations.
• Free fillable file forms
• These forms are available for download and electronic submission through the IRS for all taxpayers. However, these models are not guided and may be more difficult for many to navigate.