The IRS Direct File cancellation shifts free tax filing to private programs, raising access concerns for Latino and low-income taxpayers
The Internal Revenue Service has eliminated its Direct File program, a free online tax filing service that allowed eligible taxpayers in 25 states to file their federal returns directly with the IRS at no cost during the 2024 and 2025 tax seasons. The service will not be available for the 2026 tax filing season, marking a major shift in how low- and middle-income Americans access free tax preparation.
The decision to discontinue Direct File was made under the Trump administration, which cited low participation rates and high operational costs. Treasury officials also acknowledged strong opposition from the private tax preparation industry, which has long argued that the federal government should not compete with commercial filing services.
Why the End of Direct File Matters
While the IRS did not release detailed demographic data, Treasury officials previously noted that Direct File helped ensure Latino taxpayers and Spanish-speaking households could file federal taxes online for free and more easily claim credits they were eligible for. The platform was available in both English and Spanish, reducing language barriers that have historically limited access to tax benefits.
Research has consistently shown that Latino taxpayers are less likely to claim certain refundable credits, including the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC), often due to lack of access to affordable, trustworthy filing options or confusion about eligibility rules. Advocates say the loss of Direct File may widen those gaps, particularly for mixed-status families and first-time filers who relied on a government-run option they perceived as neutral and secure.
Free, Credible Tax Filing Options Still Available
Despite the cancellation of Direct File, several IRS-approved free filing options remain available for the 2026 season:
IRS Free File Program
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Who qualifies: Taxpayers with an Adjusted Gross Income (AGI) of $84,000 or less
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What it offers: Free guided tax preparation and electronic filing through private software companies partnered with the IRS
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Important note: Availability and features vary by provider, and some may charge for state returns or additional services
IRS Free File Fillable Forms
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Who qualifies: Taxpayers of any income level
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What it offers: Free electronic federal forms without step-by-step guidance
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Best for: Filers comfortable preparing their own taxes
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE)
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Who qualifies:
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Generally, taxpayers earning $64,000 or less
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People with disabilities
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Seniors (TCE)
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Taxpayers with limited English proficiency
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What it offers: Free, in-person tax preparation by IRS-certified volunteers, often available in Spanish
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Availability: Community centers, schools, churches, and nonprofit organizations
MilTax
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Who qualifies: Active-duty military members, qualifying veterans, and their families
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What it offers: Free tax preparation and e-filing, regardless of income
Taxpayers who previously relied on Direct File will now need to use one of these alternatives or pay for commercial tax preparation services.
Key Tax Filing Deadlines and Extensions
For most taxpayers, the federal tax filing deadline remains April 15. If that date falls on a weekend or holiday, the deadline shifts to the next business day.
Taxpayers who need more time can request an automatic six-month extension by filing IRS Form 4868 by the April deadline. This extension moves the filing deadline to October 15, but it does not extend the deadline to pay taxes owed. Any estimated taxes must still be paid by April 15 to avoid penalties and interest.
Importantly, the extension request process remains available directly through the IRS, and taxpayers can submit it online for free.
What Comes Next
As the IRS continues to modernize its systems, the end of Direct File underscores an ongoing debate about whether free tax filing should be a public service or a private marketplace. For Latino households — particularly those with lower incomes, limited English proficiency, or complex family situations — the loss of a simplified, government-run option may make navigating tax season more challenging.
For now, experts recommend that eligible taxpayers review free options early, confirm qualification requirements, and avoid last-minute filing to reduce errors, missed credits, or unnecessary fees.
