Trump boasts on GOP tax cuts
President Donald Trump touted acheivements Republicans made with tax cuts during his State of the Union 2026 speech.
A venerable IRS program called Free File allows 70% of taxpayers to file their taxes for free, just as the name implies. Only 2% of taxpayers used the service in 2024.
That is the finding of a February report from NerdWallet, the personal finance site, which describes the free tax program as “woefully” underused.
“It’s just astounding how few of the eligible filers are using this thing every year,” said Sam Taube, a lead investing writer at NerdWallet.
The typical taxpayer spends hundreds of dollars on tax software or human preparers to complete their taxes. In 2024, the Biden administration estimated that the average American spends $270 on tax preparation.
Free File, launched in 2003, allows taxpayers with modest incomes to file taxes at no charge, with help from tax preparer partners, an alternative to paid tax-preparation software.
In 2024, taxpayers filed about 3 million tax returns through Free File, according to a report from the nonprofit Tax Policy Center. An additional 140,000 returns came in under IRS Direct File, a pilot program that allowed taxpayers with simple taxes to file directly to the tax agency at no cost.
Trump administration axed Direct File
But the Trump administration ended Direct File after the 2025 tax season, claiming it was wasteful and unnecessary. Commercial tax-preparation companies had lobbied against the program.
Taxpayer advocates lament the death of Direct File, a 2-year-old effort that hadn’t yet expanded beyond 25 states.
“I think this is really a pretty simple case of what’s better for your average taxpayer versus what’s better for these big corporations,” said David Kass, executive director of the nonprofit Americans for Tax Fairness.
That leaves Free File as the most visible IRS program for taxpayers to submit their taxes for free, and researchers are wondering why so few taxpayers use it.
Commercial tax preparers deserve some blame. A 2019 investigation by the nonprofit newsroom ProPublica found that two IRS partners, TurboTax and H&R Block, undermined Free File by hiding the service on their websites and steering taxpayers into pricier tax-preparation products.
“For decades, giant tax prep companies have used Free File to trick Americans into overpaying to file their taxes,” said Sen. Elizabeth Warren, D-Massachusetts, in a statement to USA TODAY. “Americans want a truly free, secure, and easy-to-use tax filing system – and they got it with Direct File.”
Warren and other congressional Democrats have filed a bill to reinstate Direct File and make it permanent.
Here is a rundown of some remaining options for taxpayers who want to file returns for free.
IRS Free File
Free File, not to be confused with Direct File, remains operational for taxpayers in 2026.
To qualify for Free File, you must have an adjusted gross income of $89,000 or less. That means 70% of taxpayers are eligible, according to federal estimates.
TurboTax and H&R Block have ended their partnerships with Free File. The current partners are 1040Now, 1040.com, ezTaxReturn.com, FileYourTaxes.com, OnLine Taxes, TaxAct, FreeTaxUSA and TaxSlayer.
To use Free File, visit its website. You choose a partner tax-prep company and answer a series of guided questions to begin preparing your return. In effect, Free File allows you to use the tax preparer’s software at no cost.
Free File Fillable Forms
A variation on IRS Free File, the Fillable Forms option is open to anyone, but it’s tailored for taxpayers “who are comfortable preparing their own taxes using IRS forms and instructions,” the website instructs.
In other words: If you need help with your taxes, or you’re easily stumped, this option may not be for you.
AARP Foundation Tax-Aide
Tax-Aide, launched in 1968, is billed as the nation’s largest free, volunteer-staffed program to help people prepare and file taxes, with more than 82 million taxpayers served.
In 2025, Tax-Aide volunteers helped more than 1.7 million taxpayers file returns. Volunteers are IRS-certified and briefed on the tax code.
“Anyone is eligible, but we really focus on individuals who have low to moderate income, and our training is focused there as well,” said Mioshi Moses, vice president of volunteer programs at AARP Foundation, speaking to USA TODAY in 2025. Most clients are over 50 and have low incomes.
There are no hidden fees, and volunteers are trained to help taxpayers find deductions and credits they might otherwise miss. For example, many taxpayers qualify for the Earned Income Tax Credit, a tax break for low- to moderate-income workers.
“It’s one of the most effective anti-poverty tools that’s out there,” Moses said. “What we find is that many eligible adults don’t claim it.”
Volunteers take appointments at more than 3,600 locations nationwide, housed in libraries, malls, banks, and community centers in every state. You can have the volunteer prepare your return or get coaching to complete it yourself. You do not have to be an AARP member.
The service runs through mid-April. To find a Tax-Aide center, you can use AARP’s Tax-Aide Locator.
Free editions of commercial tax software
Some of the best-known tax preparation services offer free versions of their software. They seem to be far more popular than the IRS’s Free File – nearly 27 million tax returns were filed through free commercial software in 2024, according to the nonprofit American Coalition for Taxpayer Rights.
- H&R Block Online Free Edition : While H&R Block no longer participates in Free File, the tax preparation giant offers its free service. According to the website, 52% of taxpayers qualify for the Online Free Edition. You must have a relatively straightforward return. The service includes a free state return.
- TurboTax Free Edition : TurboTax, too, offers free tax preparation to taxpayers with relatively simple returns. Roughly 37% of filers qualify. NerdWallet lists other free versions of commercial tax-preparer software, and several other free tax-filing options, on a handy reference page.