2026 tax filing season changes: IRS Direct File unavailable
FILE - In this photo illustration, the Internal Revenue Service (IRS) logo is seen displayed on a smartphone screen and the United States flag in the background. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
The 2026 tax season is fast approaching, and filing may look a little different next year for some taxpayers.
IRS Direct File, the electronic system for filing tax returns for free, will not be offered next year, the Trump administration confirmed last week.
What is IRS Direct File?
The backstory:
Direct File was rolled out as a pilot program in 2024 after the IRS was tasked with looking into how to create a "direct file" system as part of the money it received from the Inflation Reduction Act signed into law by Biden in 2022. The Biden administration spent tens of millions of dollars developing the program and said in May 2024 that the program would be made permanent after it was praised for making tax filing easy and economical.
The other side:
It was criticized by some Republican lawmakers as being a waste of money because other free filming programs already exist, though they are not as straightforward. The program also faced intense blowback from private tax preparation companies, who charge to use their software and have spent millions lobbying Congress.
By the numbers:
The average American typically spends about $140 preparing returns each year.
Big picture view:
The IRS accepted 140,803 returns filed by taxpayers using Direct File in the 12 states where it was available last tax season – and the program was expanded to include half the country earlier this year before it was discontinued.
Local perspective:
Direct File initially launched in the following 12 states: California, New York, Arizona, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming and Massachusetts.
When it was expanded, it would’ve been available in these additional 12 states: Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin.
IRS Direct File canceled
Big picture view:
The program had been in limbo since the start of the Trump administration as Elon Musk and the Department of Government Efficiency slashed their way through the federal government.
What they're saying:
An email sent in early November from IRS official Cynthia Noe to state comptrollers that participate in the Direct File program said that "IRS Direct File will not be available in Filing Season 2026. No launch date has been set for the future."
Treasury Secretary Scott Bessent, who is also the current IRS commissioner, told reporters at the White House in November that there are "better alternatives" to Direct File. "It wasn’t used very much," he said. "And we think that the private sector can do a better job."
As of Wednesday, the Direct File website states that "Direct File is closed. More information will be available at a later date."
RELATED: Your tax refund could be bigger in 2026 – here's how
2026 tax filing season
What's next:
The 2026 tax filing season will open sometime in late January, with the official date to be announced later by the IRS. Some other changes are in store next season for taxpayers, thanks to President Trump’s One Big Beautiful Bill Act (OBBBA). Standard deduction rates will be higher, and tax brackets have been adjusted to account for inflation.
By the numbers:
The standard deduction, claimed by the majority of taxpayers who don't itemize their returns, will rise to $16,100 for single taxpayers and $32,200 for married couples filing jointly in tax year 2026. OBBBA also raised the standard deduction for the 2025 tax year to $15,750 for single filers and $31,500 for couples filing jointly.
What you can do:
You can always check the progress of your tax withholding to estimate how much you may owe or how big of a refund you’ll get. You can input your paycheck information with this IRS estimator tool to see your results.
And if you used Direct File in the past, you’ll have to find another method of filing your taxes next year.
The Source: Information in this article was taken from the Direct File website, and from an IRS memo obtained by The Associated Press. Background information about the 2026 filing season was taken from the IRS website and previous FOX Television Station reportings. This story was reported from Detroit.