Posted on 04/16/2025 5:47:57 PM PDT by Olog-hai
The Trump administration plans to eliminate the IRS’ Direct File program, an electronic system for filing tax returns directly to the agency for free, according to two people familiar with the decision.
The program developed during Joe Biden’s presidency was credited by users with making tax filing easy, fast and economical. But Republican lawmakers and commercial tax preparation companies complained it was a waste of taxpayer money because free filing programs already exist, although they are hard to use.
The program had been in limbo since the start of the Trump administration as Elon Musk and the Department of Government Efficiency have slashed their way through the federal government. Musk posted in February on his social media site, X, that he had “deleted” 18F, a government agency that worked on technology projects such as Direct File. […]
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 Democratic administration spent tens of millions of dollars developing the program.
Last May, the agency announced that the program would be made permanent.
But the IRS has faced intense blowback to Direct File from private tax preparation companies that have made billions from charging people to use their software and have spent millions lobbying Congress. The average American typically spends about $140 preparing returns each year. …
(Excerpt) Read more at apnews.com ...
I exaggerated but it is at least 30. Having done my own taxes since I became a wage earner, it is pretty straightforward once all the forms come in. I had heard a few years ago that you stood less of a chance of an audit if you mailed in your contribution to the state.
So that is my question, I used FreeTaxUSA.com this year to file both state & federal returns for $8 compared to the almost $200 Intuit wanted. Will that offer stand in the future?
FreeTax’s UI was much better and cleaner/faster than TurboTax’s, I’ll be back if the price stays that low to file my basic return.
I imagine FreeTax will not be offering free federal filings next year due to they being a participate of the program. :(
AP is lying as usual. We just did ours using “the difficult” third party it took less than two minutes.
It’s ridiculous isn’t it? For W2 employees it should be simple. Heck it should be simple for everyone!! I just did my S Corp it’s absurd the numbers of exemptions and deductions and credits and whatnot. No I don’t have oil reserves to deplete. No my landlord won’t let me install solar for the business credits. Is our health insurance an employee benefit? They make it so you gotta pay $1000s to an expert or to at least spend scores of hours to learn.
Not sure why they are dropping this program hopefully because they intend to make it even simpler.
Don’t those “free” services take a % of any refund you may get?
It’s not hard to use but it is a hell of a lot of questions for self employed or owner-operated businesses.
Then, you think you are finished and they say, “Comrade, we think you are a fine candidate for the Alternative Minimum Tax.”
I heard it’s even less likely if you submit them late. As long as you’ve paid all your tax or have none due there’s no penalty for filing late.
“compared to the almost $200 Intuit wanted.”
We filed our personal and daughter’s business+state for about $100.
Costco price although Intuit gave me an email with a price not much higher.
I have to get an extension every year. I usually don’t file until July. I’m golden!
Oh yeah. In my previous life my boss got socked with the AMT every year. He paid $5k a year each for his personal and business taxes to a CPA plus he had a bookkeeper and a comptroller on full time payroll. Wasn’t an huge business but still big enough. And every year the CPA would say “there’s no getting around the AMT”.
I have been using https://www.freefilefillableforms.com/ for years. There were limitations to https://directfile.irs.gov/ that kept me from using it when I first looked into it. I am perfectly happy with free fillable forms and am glad that there are apparently no plans to discontinue it.
Ass Press.
Trust me, I was tempted not to file this year. I’m retired and on SSA/SSDI, but I also got a govn retirement annuity coming in that the state of Indiana loves to tax. There are very few states that don’t tax it.
30 is still a lot of pages. Probably feels like 50 once you get it all done. I’ve never owned property, stocks or bonds. Have no savings. The only dependents I ever took were my two sons, who are now in their 50’s. Been retired since 2003, so the only deduction is me. I have a pension and social security, and get a refund every year.
I still think that it is a crime that social security benefits are taxed.
“free filing programs already exist, although they are hard to use.”
hogwash ... trubotax and H&R Block PC software are extremely easy to use, esp. for anyone with just a few simple sources of income ... if you’re too stupid to do that, then you’ll definitely be F-ed if you try to use a government program to file ...
I have used the free edition of TurboTax for years and never paid a cent.
I’ll wait for a reputable news source to report on this.
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