President Trump brags about Republican tax cuts
President Donald Trump touted the gains from Republican tax cuts in his 2026 State of the Union address.
A venerable IRS program called Free File, as the name suggests, allows 70% of taxpayers to file their taxes for free. Only 2% of taxpayers used this service in 2024.
That’s what a February report from personal finance site NerdWallet found, which said the free tax program is “woefully” underutilized.
“It’s amazing how few eligible filers take advantage of this each year,” said Sam Taub, chief investment writer at NerdWallet.
The typical taxpayer spends hundreds of dollars on tax software and human preparers to complete their taxes. The Biden administration estimated that the average American will spend $270 on tax preparation in 2024.
Launched in 2003, Free File allows taxpayers with modest incomes to file their taxes for free with the help of a tax preparation partner as an alternative to paid tax preparation software.
In 2024, taxpayers filed about 3 million tax returns through Free File, according to a report by the nonprofit Tax Policy Center. An additional 140,000 returns were delivered under IRS Direct File, a pilot program that allows simplified tax taxpayers to file directly with tax authorities for free.
Trump administration abolishes Direct File
However, the Trump administration ended Direct File after the 2025 tax season, calling it wasteful and unnecessary. Commercial tax preparation companies lobbied against the program.
Taxpayer advocates have lamented the demise of Direct File, an initiative that began two years ago and had yet to expand beyond 25 states.
“I think this is a very simple case of what’s good for the average taxpayer and what’s good for these big corporations,” said David Kass, executive director of the nonprofit group Americans for Tax Fairness.
So while Free File remains the most visible IRS program that allows taxpayers to file their taxes for free, researchers wonder why so few taxpayers take advantage of it.
The creators of commercial taxes deserve some blame. A 2019 investigation by nonprofit news company ProPublica found that two IRS partners, TurboTax and H&R Block, undermined Free File by hiding their services on their websites and steering taxpayers to more expensive tax preparation products.
“For decades, giant tax preparation companies have used Free File to trick Americans into overpaying to file their taxes,” Sen. Elizabeth Warren, D-Mass., said in a statement to USA TODAY. “Americans want a tax filing system that is truly free, secure and easy to use, and with Direct File we have delivered that.”
Warren and other Democrats in Congress have introduced legislation to reinstate and make Direct File permanent.
Here we outline some of the remaining options for taxpayers who want to file for free.
IRS Free File
Free File (not to be confused with Direct File) will continue to be available to taxpayers in 2026.
To qualify for Free File, your adjusted gross income must be $89,000 or less. According to federal estimates, this means 70% of taxpayers would be eligible.
TurboTax and H&R Block have ended their partnership with Free File. Current partners include 1040Now, 1040.com, ezTaxReturn.com, FileYourTaxes.com, OnLine Taxes, TaxAct, FreeTaxUSA, and TaxSlayer.
To use Free File, please visit the website. Select a partner tax preparation firm and answer a series of guided questions to begin preparing your return. In fact, with Free File, you can use the tax preparer software for free.
Free file fillable forms
The Fillable Forms option, a variation of IRS Free File, is available to anyone, but is tailored to taxpayers who are “comfortable with preparing their own taxes using IRS forms and instructions,” the website says.
In other words, if you need help with your taxes or find yourself in trouble quickly, this option may not be for you.
AARP Foundation Taxpayer
Started in 1968, Tax-Aide is billed as the nation’s largest free, volunteer-staffed program to help people prepare and file their taxes, serving more than 82 million taxpayers.
In 2025, Tax-Aide volunteers helped more than 1.7 million taxpayers file their returns. Volunteers are IRS certified and briefed on tax laws.
“Anyone is eligible, but our focus is on low- to moderate-income individuals, and that’s where our training is focused,” Miosi Moses, AARP Foundation vice president of volunteer programs, told USA TODAY in a 2025 interview. Most customers are over 50 and low-income.
There are no hidden fees, and volunteers are trained to help taxpayers find deductions and deductions they may have missed. For example, many taxpayers qualify for the Earned Income Tax Credit, a tax reduction for low- to moderate-income workers.
“This is one of the most effective anti-poverty tools out there,” Moses said. “What we’re finding is that many eligible adults aren’t claiming it.”
Volunteers are accepting appointments at more than 3,600 locations across the country, including libraries, malls, banks and community centers in each state. You can ask a volunteer to prepare your return or get coaching to complete it yourself. You do not need to be an AARP member.
The service period is until mid-April. To find a Tax-Aide center, you can use AARP’s Tax-Aide Locator.
Free version of commercial tax software
Some of the most popular tax preparation services offer free versions of their software. These seem to be much more popular than IRS free files. According to the nonprofit American Taxpayer Rights Coalition, approximately 27 million tax returns were filed through free commercial software in 2024.
- H&R Block Online Free Edition: H&R Block is no longer participating in Free File, but the tax preparation giant still offers free services. According to the website, 52% of taxpayers qualify for the online free version. You should get a relatively easy return. This service includes free condition returns.
- TurboTax free version: TurboTax also provides free tax preparation to taxpayers with a relatively simple return. Approximately 37% of applicants qualify. NerdWallet lists other free versions of its commercial tax preparation software, as well as several other free tax options, in a handy reference page.
