IRS Free File May Be Gone After 2025 — Here’s What Taxpayers Need to Know

The IRS has a tool called Direct File that helps people do their taxes for free. But now, there’s a chance it might not be around much longer.

A group called the Department of Government Efficiency (DOGE) met with companies that sell tax software. After that meeting, DOGE said the IRS should shut down its free tool. Even though Direct File will still be available in 2025, it might not be around in the future.

So what does this mean for you? Let’s break it down simply.

What Is IRS Direct File?

IRS Direct File is a free online tool made by the government. It lets you file your federal tax return directly through the IRS website, without paying for software or going to a tax pro.

Here’s why people like it:

It’s free
It’s simple to use
It’s safe and secure
It works right on your phone or computer

In 2024, the IRS tested it in 12 states. Many people said it made filing easier and faster. So the IRS is making it available again for 2025.

Why Is It Under Threat?

Some tax companies—like the ones that make TurboTax or H&R Block—aren’t happy about Direct File.

Why? Because they sell tax software. If people use the IRS’s free tool, they don’t make money.

After DOGE met with tax-software lobbyists, they recommended the IRS end Direct File after 2025. That means even though it’s still here for now, it may disappear later.

This has started a big debate:

Should the IRS offer free tax filing for everyone, or leave it to private companies?

Who Is DOGE, Anyway?

DOGE stands for Department of Government Efficiency. Their job is to look at how the government spends money and suggest ways to save.

But many people are asking:

“Are they really trying to save money, or are they just helping big companies stay in control?”

After just one meeting with lobbyists, DOGE suggested the IRS should stop investing in Direct File—even though early results show the tool worked well and saved people time and money.

Why Direct File Matters

If you’ve ever done your own taxes, you know it can be confusing. Many people end up paying $100–$300 just to file a simple return.

IRS Direct File helps by offering a free way to file—without upsells, pop-ups, or extra fees.

It also makes sure:

Your data stays private
You don’t get tricked by fake “free” services
You file directly with the government

For many people, especially those with lower incomes or simple tax situations, this tool makes a big difference.

Real People, Real Results

In the 2024 test run, over 140,000 people used Direct File. Here’s what many users said:

“It saved me money. I didn’t have to upgrade or pay hidden fees.”
“It was easy to use. I just followed the steps.”
“I felt safer using the IRS site than third-party apps.”

It’s not perfect yet—Direct File still doesn’t handle all tax situations. But it worked well for most W-2 earners, retirees, and part-time workers.

What Happens Next?

For now, the IRS says Direct File will stay for 2025. But after that, its future is uncertain.

If DOGE’s recommendation goes through, the IRS may be forced to shut it down. That means millions of people will have to go back to paid tax software—even if their taxes are simple.

The good news? You still have time to use it in 2025. And lawmakers are still debating whether it should stay long-term.

What You Can Do

If you want to keep using free, safe tax tools, here’s how you can help:

Try Direct File in 2025 if it’s available in your state.
Tell your representatives that free tax tools matter.
Watch out for fake “free” software that charges at the end.
Share this info with friends and family who might benefit.

And of course, talk to a trusted CPA if your taxes are more complex. Direct File is great for basic returns—but everyone’s situation is different.

Should You Still Work With a CPA?

Absolutely! While Direct File is helpful for simple cases, CPAs can do much more:

Help with business taxes
Find tax-saving strategies
Handle multi-state returns
Plan for retirement, investments, and more

If you want peace of mind—and possibly lower taxes—a CPA can help you file smarter, not just faster.