DOGE vs. IRS’ Free Tax Filing Program: What It Could Mean for Your Wallet Next Tax Season
Written by
Laura Gariepy
Edited by
Amber Barkley
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You already pay a lot in taxes, so it makes sense to try to save money when filing your annual tax return. Under the Biden administration, the IRS expanded the Direct File program, which allows taxpayers in participating states to file their taxes directly through the government agency for free. However, it seems the Trump administration isn’t on board.
While the program has some support, many Republicans, and now more specifically the Department of Government Efficiency (DOGE), take major issue with it and want President Trump to abolish it. As of this tax season though, when filing for the 2024 tax year, the Direct File program is still available for you through the Tax Day deadline of April 15, 2025. Here are some key takeaways:
- As part of the Inflation Reduction Act started by former President Biden, the IRS rolled out Direct File as a pilot program last year with the funds they received.
- Despite the Trump administration’s animosity toward the program, the IRS is pushing to make Direct File a permanent option for taxpayers.
- The IRS accepted 140,803 returns filed by taxpayers using Direct File in the 12 states where it was available last tax season.
- In 2025, it’s been expanded to include nearly half the United States this year, but how many actually filed this way this tax season has not been calculated yet, but will be determined after Tax Day.
Speaking of, if you still need to file your taxes, find out about free tax software you can use here.
How Does the IRS Direct File Program Work?
The IRS Direct File program is still in its infancy and has several limitations going into the 2025 tax season, including:
- It’s still not available for residents of all states.
- You must live and work in a participating state for all of 2024.
- You can’t have business, rental or gig economy income.
- You can’t itemize your deductions.
- It only helps with your federal return. You must use another method to file your state return.
Why Is It Controversial?
Supporters believe the program helps taxpayers save money and file their returns more easily. However, twenty-nine members of Congress signed a letter penned by Representative Adrian Smith that offers two main reasons the program should get axed: It’s a conflict of interest and a waste of money.
Smith wrote, “Under the guise of offering a convenient ‘free-to-file’ alternative preparation service, the IRS asserts itself as the tax assessor, collector, preparer and enforcer — all in one — when the program is used.” He added that the IRS could benefit from people and businesses paying more in taxes than the law requires, which presents a conflict of interest.
He also calculated that the Direct File program costs around $814 per tax return filed through the service and pointed out that other free filing services already exist through the Free File partnership between the IRS and tax preparation and software companies.
What Happens If It Goes Away
If you are planning to use this program, don’t panic. It’s not the only free or low-cost way to file your tax return. Lisa Niser, enrolled agent and tax advisor, said, “With the other options out there, [losing Direct File] isn’t a huge concern.”
Kevin Jerry, owner of Kevin A Jerry MST and Associates, added, “I can’t think of any other ways this would affect filers, except now they have to pay a very nominal fee. … Simple filers who take the standard deduction will not pay more in taxes using [another] proven tax program.
“If you answer the questions correctly, the programs will guide you on opportunities like the Child Tax Credit. I used TurboTax for years when I was a W-2 employee. I never overpaid a dime,” Jerry said.
Alternative Ways To File
If you’re on a budget, Niser encouraged you to check out these free tax filing programs:
- Volunteer Income Tax Assistance (VITA) program: Those earning $67,000 or less, with a disability or with limited English language skills may qualify for assistance.
- MilTax program: Military personnel, qualifying veterans and their family members can file federal and state returns, in up to three states, and get tax advice.
- AARP Foundation Tax-Aide program: While it is focused on helping those over age 50 with low to moderate income, anyone can use the service — even if they’re not an AARP member.
Niser added, “Many community centers, libraries and non-profit organizations offer free or low-cost tax preparation services.”
Cecil Staton, certified financial planner and president of Arch Financial Planning, said, “Several online tax software programs provide free or reduced cost [ways] to self-file. For simple and low-income tax returns, [these] could be great alternatives.”
Jerry agreed and mentioned FreeTaxUSA and TaxSlayer as viable options.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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