IRS Direct File Is Gone for 2026: Here Are Your 5 Best Free (and Affordable) Tax Filing Options in New Haven

New Haven, CT – February 11, 2026 – The IRS Direct File pilot program has ended, leaving many New Haven taxpayers wondering how to file their 2025 returns without paying steep software fees. Good news: you still have multiple free and low-cost options available right now.

Whether you earned $30,000 or $130,000 last year, there's a filing solution that fits your situation. Here's what you need to know before the April 15th deadline.

Why Direct File Is No Longer Available

The IRS Direct File program was a limited pilot that allowed eligible taxpayers to file simple returns directly with the IRS at no cost. For the 2026 filing season (covering 2025 tax year returns), this program has been discontinued.

This means New Haven residents who previously used Direct File must find alternative filing methods. The good news? Several established free and affordable options remain available: and some offer more features than Direct File ever did.

Option #1: IRS Free File (For Those Earning $89,000 or Less)

Who qualifies: Taxpayers with an Adjusted Gross Income of $89,000 or less for the 2025 tax year.

What it includes: The IRS partners with eight commercial tax software companies to offer completely free federal tax preparation and filing. Some partners also include free state return preparation.

Important details:

• Each partner sets additional eligibility requirements beyond the income limit
• Age, residency, military status, and specific tax situations may affect which partners you qualify for
• Access the program only through the official IRS Free File portal at IRS.gov: never through the software company's main website
• Available for simple and moderately complex returns, including itemized deductions, self-employment income, and certain tax credits

How to start:

1. Visit IRS.gov and search for "Free File"
2. Use the lookup tool to find partners you qualify for
3. Select a partner and complete your return directly through their guided system
4. File both federal and state returns (if offered by that partner)

Most New Haven families earning under the threshold will find this the easiest free option. The software walks you through every question, catches common errors, and maximizes your deductions automatically.

Option #2: IRS Free File Fillable Forms (For DIY Filers at Any Income Level)

Who qualifies: Any taxpayer, regardless of income.

What it includes: Electronic versions of IRS paper forms with basic calculation assistance.

Best for: Taxpayers comfortable with tax law who want to prepare their own returns without software guidance.

Important details:

• No income restrictions apply
• Requires solid understanding of tax forms and filing requirements
• Forms perform basic calculations but provide minimal guidance
• Federal filing is free; state returns must be filed separately
• Suitable for straightforward returns without complex deductions

How to start:

1. Access Free File Fillable Forms through IRS.gov
2. Select the forms you need (1040, Schedule C, etc.)
3. Enter your information directly into each form
4. Review calculations and submit electronically

This option works well for New Haven business owners or self-employed individuals who understand their tax situation and want direct control over every entry. It's not beginner-friendly.

Option #3: VITA and Tax Counseling for the Elderly (Free In-Person Help)

Who qualifies:

• Individuals earning $64,000 or less
• Persons with disabilities
• Limited English-speaking taxpayers
• Seniors (age 60 and older for TCE)

What it includes: Free tax preparation by IRS-certified volunteers at community locations throughout New Haven.

Where to find VITA sites in New Haven:

Call 1-800-906-9887 or visit IRS.gov and search "VITA locator" to find the nearest site. Many New Haven libraries, community centers, and nonprofit organizations host VITA sites during tax season.

Important details:

• Volunteers prepare basic to moderately complex returns
• Bring all tax documents, ID, Social Security cards, and bank account information for direct deposit
• Services available by appointment at most locations
• Completely free for qualified individuals
• Available in multiple languages at many sites

VITA is excellent for New Haven residents who prefer face-to-face assistance and want someone to walk them through the entire process.

Option #4: MilTax (For Military Community Members)

Who qualifies: Active duty military, National Guard, Reserves, and their families.

What it includes: Free tax preparation software provided by the Department of Defense, including one federal return and up to three state returns.

Important details:

• Designed specifically for military tax situations
• Handles combat pay, housing allowances, and other military-specific income
• Includes free support from tax consultants
• Covers both simple and complex military returns
• State returns included at no additional cost

How to start:

1. Visit MilitaryOneSource.mil
2. Create or log into your account
3. Access MilTax software under Financial & Legal Resources
4. Complete your return with military-specific guidance

New Haven has a significant military community connected to nearby installations. MilTax addresses unique military tax situations better than commercial software.

Option #5: FreeTaxUSA (Low-Cost Alternative for Everyone)

Who qualifies: Any taxpayer who doesn't mind paying a small fee for enhanced features.

Cost: Free federal filing; state returns cost $14.99 each.

What it includes: Full-featured tax software comparable to TurboTax or H&R Block, but at a fraction of the cost.

Why consider it:

• Handles all tax situations, including investments, rental properties, and small business income
• Unlimited support via email
• Audit assistance available
• Import prior year returns from other software
• Free federal filing for all income levels
• Only pay for state returns if needed

Important details:

• Not officially part of IRS Free File, but independently affordable
• Deluxe version with priority support costs $7.99
• Still significantly cheaper than TurboTax or H&R Block (which can exceed $100)
• Easy-to-use interface with step-by-step guidance

For New Haven taxpayers who exceed the Free File income limit but want affordable DIY software, FreeTaxUSA offers the best value.

When a Local Tax Pro Makes Sense

Free and low-cost software works great for straightforward returns. But if your tax situation includes any of these, working with a local New Haven tax professional might actually save you money:

• Self-employment or small business income
• Rental properties
• Investment income and capital gains
• Multiple income streams
• Complex deductions
• Past filing issues or IRS notices
• Questions about estimated tax payments

At Jose's Tax Service, we offer personalized service at competitive rates: often comparable to premium DIY software once you factor in the time you save and deductions you might miss. We're familiar with Connecticut-specific tax issues that affect New Haven residents, and we're available year-round for questions.

Plus, when you work with a local tax pro, you get someone who reviews your return before it's filed, reducing the chance of errors that trigger IRS letters or delay your refund.

Getting Your Refund Fast!

No matter which filing option you choose, follow these steps to receive your refund as quickly as possible:

File electronically. E-filed returns process faster than paper returns.

Choose direct deposit. Most refunds arrive within 21 days when you file electronically with direct deposit to a checking or savings account.

Double-check your return. Errors delay processing. Verify Social Security numbers, income amounts, and bank account information.

Track your refund. Use the IRS "Where's My Refund?" tool at IRS.gov after filing. Updates appear within 24 hours of e-filing.

Be aware of PATH Act delays. If you're claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), federal law requires the IRS to hold your refund until mid-February. Your refund should arrive by early March if you file in January.

File Now: Don't Wait Until April!

The 2026 filing deadline is April 15th, but there's no reason to wait. The IRS begins processing returns immediately, and filing early offers several advantages:

• Faster refunds
• More time to address any issues or questions
• Protection against tax refund fraud (identity thieves can't file a fake return in your name if you've already filed)
• Peace of mind knowing it's done

New Haven taxpayers have more free and affordable filing options than ever before. Choose the method that fits your situation, gather your documents, and get your 2025 return filed.

Need help deciding which option is right for you? Jose's Tax Service is here to answer questions and provide personalized filing assistance. Visit us at josestaxservice.com or stop by our New Haven office: we're local, accessible, and ready to help you maximize your refund without the hassle.