With the IRS expecting over 140 million individual tax returns for the 2024 tax year, choosing the right tax filing method is more important than ever. Countless taxpayers will rely on a tax professional with licensing or credentials, as the IRS warns against scams and urges people to use a trusted tax expert.
But with the IRS Direct File program facing criticism and limited availability, you may be wondering: What’s the best alternative? Whether you need a free option, online tax software, or expert assistance, this article will help you find the best way to file your 2024 taxes before the April 15, 2025 deadline.
Why Consider an Alternative to IRS Direct File?
What Is IRS Direct File, and Who Can Use It?
IRS Direct File is an IRS service that allows eligible taxpayers to file federal income tax returns online directly with the IRS for free. It’s part of the IRS Direct File pilot program, introduced to provide an alternative to commercial tax prep software.
Here’s what Direct File offers:
- A free service for eligible taxpayers to file their tax return.
- Limited support for types of income, credits and deductions, and state returns.
- An IRS customer service option via live chat feature for technical and general tax law questions.
What Are the Limitations of IRS Direct File?
While the IRS offers Direct File as a free option, it has significant gaps that might make you consider an alternative.
- Limited Eligibility: Not all taxpayers qualify—Direct File is restricted to those with specific types of income (like W-2 wages and Social Security).
- No Business or Self-Employment Support: If you’re a 1099 worker, small business owner, or have rental income, you can’t prepare and file with Direct File.
- State Returns Not Included: If you need to complete their state taxes, Direct File will guide you to another filing tool—but it won’t file your state tax return.
- Minimal IRS Customer Support: While IRS Direct File customer support exists, help is limited to basic tax guidance.
- No Personalized Tax Planning: A tax preparer or accountant can help with tax credits, inflation reduction act benefits, and deductions—Direct File does not.
If you need state tax filing, advanced tax credits, self-employment deductions, or business tax support, use Direct File is not the best choice. You’ll need an alternative.
Top Free Tax Filing Alternatives
How Does IRS Free File Work?
If you don’t qualify for IRS Direct File, the IRS Free File program offers another way for eligible taxpayers to file their federal tax return for free.
- IRS Free File provides guided tax software for people with an adjusted gross income (AGI) of $84,000 or less.
- Free File Fillable Forms are available to all taxpayers, but require manual entry—not ideal if you need help calculating your federal tax bill.
- Some IRS Free File providers include state tax filing for free, while others charge a fee.
- The IRS warns taxpayers to use direct file only through IRS.gov—going directly to a commercial tax prep company may result in unexpected fees.
If you need free tax filing and don’t qualify for Direct File, IRS Free File is your next best option—but only if your income tax situation is simple.
What Other Free Tax Filing Options Exist?
If IRS Free File doesn’t fit your needs, consider these other free services:
- Volunteer Income Tax Assistance (VITA): Available for low-income taxpayers, people with disabilities, and those with limited English proficiency.
- Tax Counseling for the Elderly (TCE): Helps seniors prepare and file their federal tax returns, with a focus on retirement tax credits.
- MilTax (For Military Members): A free tax filing service for active-duty military and veterans, including state returns for free.
- State-Sponsored Free Filing Programs: Some states offer their own free file program—check IRS.gov for your state’s options.
Be cautious of preparers with credentials and select qualifications that charge fees to file under the guise of free services. Always verify through the Directory of Federal Tax Return Preparers.
Further Reading: Free Tax Filing Services vs. Premium Services
Paid Tax Filing Options: Is It Worth Hiring a Tax Accountant?
When Should You Hire a Tax Professional Instead of Using Free File?
If your tax situation is complex, a tax preparer (CPA, EA, or tax attorney) can save you time and money. Here’s when hiring a professional makes sense:
- You’re self-employed or own a business—a tax accountant can help with deductions, tax credits, and estimated payments.
- You have investment income—stocks, rental properties, and cryptocurrency have complicated tax implications.
- You qualify for major tax credits—such as the child tax credit, earned income tax credit (EITC), or business deductions.
- You’re worried about an audit—a CPA or federal tax return preparer can represent you if the IRS for free decides to review your return.
- You want to file electronically with direct deposit—a tax pro ensures your refund arrives faster and without errors.
If your return goes beyond basic W-2 income tax returns, hiring a tax preparer could maximize your refund and reduce stress.
Further Reading: Comparing DIY Tax Software vs. Professional Accountants
How Can Taxfyle Help as an IRS Direct File Alternative?
IRS Direct File is open, but it only works for simple tax situations—no business income, investment deductions, or full state tax support. If you need more than basic filing, Taxfyle is the smarter choice.Here’s how Taxfyle helps business owners and self-employed individuals:
- Access to Self-Service & Assisted Options — Alongside the full-service option, Taxfyle allows you to prepare your tax return yourself or get have a Pro review your return as an ad-on through its Self-Service and Pro Assisted services. The services are designed for tax filers with simpler tax returns.
- Matched with a Licensed Tax Pro – Unlike the IRS Direct File system, Taxfyle's full-service connects you to a licensed CPA or IRS Enrolled Agent who will do the work of preparing and filing your tax return for you.
- Handles Both Federal & State Returns – IRS Direct File only covers federal returns, but Taxfyle prepares and files both.
- Maximizes Deductions – Business expenses, home office, direct deposit refunds — your Pro will help you get the maximum possible refund.
- Full-Service Filing – Upload your tax docs, file online, and let a Pro handle the work.
