30-07-2025
Map Shows States Where IRS Tax Returns Could Change for 2026
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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Options for filing tax returns are likely to change in 2026 for taxpayers in 25 states.
IRS Commissioner Billy Long, whom President Donald Trump appointed to head the federal tax agency last month, appeared to confirm that Direct File—which offers free tax filing directly with the IRS—won't be an option for the next filing season.
On Monday, at the National Association of Enrolled Agents' tax summit, he said: "You've heard of Direct File. That's gone. Big beautiful Billy wiped that out."
Under the One Big Beautiful Bill Act, passed by Congress and signed by the president earlier this month, the Treasury has been directed to form a task force to replace the program, which has been running for only two years.
Newsweek has contacted the IRS for comment via email.
What Is Direct File?
Direct File is a web-based service that allows taxpayers to submit simple returns directly with the government agency free of charge, eliminating the need for a third-party tax preparation service.
The IRS launched its Direct File pilot in 12 U.S. states in March 2024, expanding it to 25 states for the 2025 tax season. These are the states:
Alaska
Arizona
California
Connecticut
Florida
Idaho
Illinois
Kansas
Maine
Maryland
Massachusetts
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Oregon
Pennsylvania
South Dakota
Tennessee
Texas
Washington state
Wisconsin
Wyoming
The program, created under the Biden administration, served 141,000 taxpayers across the initial 12 states it was available for in 2024. The Economic Security Project has estimated that the program saved an average of $160 in tax preparation fees for its users.
Republicans and private tax preparation companies have derided the program, saying free options already exist for filers and that it is a waste of taxpayer money.
Is Direct File Finished?
The IRS has not announced that the program is shutting down, but provisions in the One Big Beautiful Bill Act show that the administration is looking for a replacement.
Under the legislation, which Trump signed into law on July 4, the Treasury has 90 days from the law's passage to send Congress a report that includes the following:
How much it would cost to expand or create public-private partnerships that offer free tax filing for up to 70 percent of taxpayers based on their income. These partnerships would take the place of any IRS-run free filing programs.
What taxpayers think about using a free, government-run tax filing system versus one provided by private companies.
Whether a new system is possible, how to make all filing options simple and consistent for users, and how to meet different taxpayer needs.
The estimated cost of creating and managing a free IRS-run online tax filing system, including options for adjusting the system based on a person's income and how complex their tax return is.
Is Direct File Still Open?
Direct File remains open through October 15, 2025, for anyone who has yet to file a 2024 tax return. But it is looking unlikely it will be in place for 2026. Given that the administration is looking to replace it, it is also unlikely that it will be expanded to any further states if it remains active for the next tax season.
What Other Free Filing Options Are There?
The longer-standing Free File program appears to be unaffected. Under that program, companies participating in a public-private partnership with the IRS offer free tax preparation software. IRS Free File offers guided tax software to taxpayers with an adjusted gross income of $84,000 or less.
For those who don't qualify, IRS Free File still provides fillable forms that any taxpayer, regardless of income, can use if they prefer to prepare their own return.
