IRS Direct File is a new, free online tax filing service launched by the Internal Revenue Service to make filing federal tax returns faster, easier, and more affordable. First tested in 2024 with select states, the program is being expanded nationwide in 2026 to allow more Americans to file directly with the IRS—without using third-party software or paying any fees.
The IRS designed this service for people with simple tax returns, like W-2 income, standard deductions, and common credits such as the Child Tax Credit or Earned Income Tax Credit (EITC). It’s now one of the easiest ways for working Americans to file their federal taxes at no cost.
Table of Contents
Who Can Use IRS Direct File in 2026?
The Direct File program is open to most taxpayers with uncomplicated tax situations. You may be eligible to use it if:
- You have income only from W-2 wages or certain 1099s
- You claim the standard deduction
- You are eligible for basic tax credits (EITC, Child Tax Credit, etc.)
- You don’t claim itemized deductions
- You’re filing a federal return only (some states may integrate later)
People with income from self-employment, rental properties, or investments still need to use other filing options.
How Does It Work?
Here’s how the process works step-by-step:
- Visit the IRS Direct File portal during the 2026 tax season (opens in January).
- Log in using your ID.me or IRS username and password.
- Enter your income and tax credit information using the built-in guides.
- The system calculates your refund or tax due automatically.
- You e-sign and file your return directly with the IRS—no fees, no upselling.
IRS Direct File also provides real-time help through a built-in chat feature with IRS customer service reps.
What About State Returns?
Currently, IRS Direct File only supports federal returns. However, in 2026, several states may participate in pilot integrations to allow for state tax filing as well.
If your state isn’t supported, you may still need to file your state tax return separately using your state’s e-file system or another service.
Frequently Asked Questions (FAQs)
1. Is IRS Direct File really free?
Yes. It is 100% free for eligible users. There are no hidden fees, add-ons, or upgrades—unlike many commercial tax services.
2. Can I use Direct File if I have a side gig or freelance income?
Not yet. The 2026 version supports only simple income types like W-2s. The IRS may expand functionality in future versions.
3. Do I still get a refund if I use IRS Direct File?
Yes. Refunds are processed just like any other e-filed return. You’ll have the option to enter direct deposit information for faster processing.