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

February 18, 2026 • Giveaways

New Haven, CT – February 18, 2026 – If you were planning to use IRS Direct File for your 2026 taxes, here's the reality: it's gone. The program has been discontinued, which means thousands of New Haven residents who relied on that free federal filing option need a new plan before the April 15th deadline.

But don't panic. You still have solid alternatives that won't break the bank: and some are completely free. Whether you're filing a simple W-2 return or dealing with side hustle income from DoorDash or freelance work, here's what you need to know right now.

Why Direct File Disappeared (And What It Means for You)

Direct File was the IRS's experiment with letting taxpayers file directly through their website without third-party software. It worked for some people with straightforward returns, but the program never expanded beyond its pilot phase.

For 2026, the IRS pulled the plug. That means if you're in New Haven and earning under $60,000 a year: which describes a lot of working families in our area: you need to find another route.

The good news? Several free and low-cost options exist. Some even offer better support than Direct File ever did.

Option 1: IRS Free File – Still the Top Free Federal Choice!

Who qualifies: Taxpayers with adjusted gross income of $89,000 or less in 2025

IRS Free File remains the most accessible free option for federal returns. Starting January 9th each year, you can access tax preparation software from eight IRS-approved partners through the official IRS website.

Here's what makes it work:

Completely free federal filing if you meet the income requirement
Guided software that walks you through deductions and credits
Potentially free state returns depending on which partner you choose

Each partner sets its own rules. Some have age restrictions. Others require state residency or military status. A few offer free Connecticut state filing, which matters if you live in New Haven and work across state lines.

The catch: You need to go through the IRS website first. Don't start directly on TurboTax or H&R Block's main site, or you'll end up paying. Access the program only through the official IRS Free File portal.

If your taxes are dead simple and you don't need guidance, Free File Fillable Forms work for anyone regardless of income. But they don't provide help, and you're on your own for state returns.

Option 2: Virtual Tax Assistance Through GetYourRefund.org

Who qualifies: Income limits apply; service available in English and Spanish

GetYourRefund.org connects you with IRS-certified volunteers who prepare your entire return online. You don't need to leave your house or sit in a waiting room.

This is perfect for New Haven residents who:

Work irregular hours or multiple jobs
Don't have reliable transportation to tax prep sites
Prefer Spanish-language assistance
Want human support without paying professional fees

The service was built by Code for America in partnership with the IRS. Volunteers are trained and certified, so you're not dealing with random people off the street.

How it works:

Upload your documents through a secure portal
A certified volunteer reviews your information
They prepare your return and contact you with questions
You review, approve, and e-file

Processing usually takes a few days to a week, depending on volunteer availability. Start early if you're using this option: don't wait until April 10th.

Option 3: In-Person VITA Sites in New Haven

Who qualifies: Generally for taxpayers earning $64,000 or less, seniors, people with disabilities, and limited English speakers

Volunteer Income Tax Assistance (VITA) sites operate throughout New Haven during tax season (January through April). These are physical locations where IRS-certified volunteers prepare your return face-to-face, completely free.

New Haven typically has VITA sites at:

Community centers
Libraries
Churches
Nonprofit organizations

You can find the nearest location by calling 888-227-7669 or using the AARP site locator. Many sites offer evening and weekend hours to accommodate work schedules.

What to bring:

Photo ID
Social Security cards for everyone on your return
W-2s, 1099s, and other income documents
Prior year tax return if available
Bank account information for direct deposit

VITA volunteers can handle most common tax situations, including Earned Income Tax Credit (EITC), Child Tax Credit, and education credits. They're great for straightforward returns but may not handle complex business income or investment portfolios.

Option 4: Free Software for Complex Situations

Who qualifies: Anyone, regardless of income**

If your taxes are more complicated: maybe you have rental income, sold stocks, or run a small business: but you still want to DIY, two platforms offer completely free federal filing:

FreeTaxUSA charges zero for federal returns, no matter how complex. State returns cost around $15, which is still cheaper than most competitors.

Cash App Taxes is also totally free for federal filing. They may charge for state returns depending on complexity.

Both platforms handle:

Multiple income sources
Itemized deductions
Self-employment income
Investment income
Rental properties

These aren't stripped-down versions. You get the full software without artificial limitations based on your income level.

Important: These platforms work best if you're comfortable navigating tax forms yourself. They provide guidance, but you won't get live human support unless you pay extra.

Option 5: Professional Help That Won't Drain Your Wallet

Who should consider this: Anyone with side income, small business revenue, or questions about deductions**

Sometimes DIY isn't worth the stress: especially if you're juggling multiple income streams, dealing with your first year of self-employment, or just want someone to double-check your work before filing.

At Jose's Tax Service in New Haven, we specialize in helping local families and small business owners maximize refunds without the big-box markup. Our rates are competitive, and you get personalized attention instead of being shuffled through a corporate system.

We handle:

Side hustle income from platforms like Uber, Etsy, or freelance work
Small business deductions most people miss
Connecticut state returns and local tax issues
Amended returns if you filed yourself and made a mistake

You can drop off documents, schedule an appointment, or call with questions. We're local, we speak your language, and we know the specific deductions that matter to New Haven taxpayers.

When it makes sense to pay for professional help:

Your return involves business expenses, depreciation, or estimated tax payments
You received a notice from the IRS and need help responding
You're claiming credits like EITC or education credits and want to avoid errors that trigger audits
You value your time and would rather spend Saturday with your family instead of hunched over tax forms

Military Members: Don't Forget MilTax

If you or your spouse serves in the military, MilTax provides free tax software and support through the Department of Defense. It covers one federal return and up to three state returns: perfect if you're stationed at the Coast Guard Academy or have Connecticut as your home of record.

Veterans may also qualify depending on their status. Check the MilTax website for current eligibility rules.

What to Do Right Now

Direct File is gone, but you have options. Here's your action plan:

Gather your documents. W-2s, 1099s, receipts for deductions, last year's return.
Check your income level. If you earned under $89,000 in 2025, start with IRS Free File.
Assess complexity. Simple W-2 return? Use free software. Side business or rental income? Consider professional help.
Don't wait until April. The earlier you file, the faster you get your refund: and the more time you have to fix mistakes if something goes wrong.
Ask for help when you need it. Whether that's a VITA volunteer, online assistance, or calling Jose's Tax Service at our New Haven office, don't let confusion cost you money.

The Bottom Line

Losing Direct File is annoying, but it doesn't mean you're stuck paying $200+ for tax prep software. Between IRS Free File, volunteer programs, and affordable professional services right here in New Haven, you can file accurately without emptying your wallet.

The worst move? Doing nothing. File on time, claim every deduction you're entitled to, and if you have questions, reach out to someone who knows Connecticut tax law and actually cares whether you get your full refund.

Need help figuring out which option works best for your situation? Give us a call at Jose's Tax Service. We'll walk you through it: no pressure, no upselling, just straight answers.