IRS has introduced a free tax filing program this year — here are the key details

The U.S. tax season is here, and the deadline for filing has been set at April 15, 2026, but this year, there are significant changes, including higher deductions and credits, to be kept in mind. The IRS has introduced the IRS Free File program, which offers two e-filing options to individuals filing for the season 2025. Free File does not pre-populate returns with current IRS data, in contrast to the now-defunct Direct File program. For 2026, the IRS projects 164 million electronic tax returns, USA Today reported. 

Before being scrapped, Direct File made it possible for eligible taxpayers to submit straightforward online forms to the IRS for a variety of income categories. Meanwhile, the Free File program, which has been in place since 2003, is accessible to anyone with an adjusted gross income of $89,000 or less in 2025. All taxpayers can use Free File Fillable Forms starting on January 26, while the program has been accepting returns since January 9.

A significant percentage of American taxpayers have access to Free File, and a marketing survey suggested that 70% of them could benefit from it. However, of the 161 million individual income tax returns filed in fiscal year 2024, only 3.1 million (or roughly 1.93%) made use of the program. On the other hand, during the same time period, 141,000 returns were filed using Direct File, and 10.8 million were filed on paper in 12 states. The IRS website is the only way to access the Free File website. The "free" classification enables qualified taxpayers to use software from Free File Alliance members to prepare and electronically file their federal tax returns at no cost.

Depending on variables like age or income, some taxpayers are only eligible for a small number of the eight programs. Users can check specific needs on the IRS website, or the IRS offers a simple questionnaire to direct them toward the appropriate providers. However, taxpayers using the IRS Free File program could be subjected to a number of restrictions, including TaxAct's age limit of 20 to 60 for free filing, which excludes active military personnel. Only the current year's taxes may be filed, and submitting early could speed up refunds. Waiting for further IRS advice before filing may be advantageous, as new deductions for gratuities and overtime pay in 2026 may make the tax preparation process more difficult.

According to experts, the IRS Free File program is a partnership between the IRS and various tax companies. While the filing itself is free, many companies may charge for additional services like state filing or extras such as audit protection. To access the program, users can navigate to the IRS website, under "filing for individuals," selecting "ways to file for free." Understanding AGI is essential as it includes total income with specific adjustments outlined in IRS Form 1040 Schedule 1. The site also provides a means to browse partner companies or filter options based on personal criteria to find suitable tax preparation services.

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