Direct File, a free IRS tax-filing tool, has been shut down less than two years after launch due to changing priorities in Washington. Despite being used by close to 300,000 taxpayers in 25 states in tax year 2024, the program was discontinued.

Created during the Biden administration, Direct File aimed to provide a no-cost filing platform without relying on commercial tax software. However, it was deemed costly and underutilized, leading to its closure in early November.

The new Treasury report cited high costs and low participation as reasons for ending Direct File. Lawmakers voiced support or opposition along party lines, with Republicans like Rep. Adrian Smith applauding the decision while Democrats like Sens. Chris Coons and Elizabeth Warren criticized it.

While Direct File is gone, other free options like Free File and VITA remain available for taxpayers. Free File partners with tax software companies to offer full-featured filing tools, while VITA offers free tax preparation to those earning $67,000 or less.

Most major tax prep brands like TurboTax and H&R Block offer a free tier, but these versions are limited to simple returns. Once your tax situation becomes more complex, they may try to transition you to a paid tier.

Read more at Yahoo Finance: IRS eliminates Direct File. How can I file my taxes for free now?