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 1, 2026 – If you were planning to use IRS Direct File this tax season, you're out of luck. The program has been discontinued for 2026, leaving thousands of New Haven taxpayers scrambling for alternatives.

But don't panic. You've still got solid options for filing your taxes without paying hundreds of dollars to big-box software companies. Some are completely free. Others are affordable and come with actual human support when you need it.

Here's what you need to know right now.

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

The IRS Direct File pilot program allowed eligible taxpayers to file simple federal returns directly through the IRS website at no cost. It was straightforward, government-run, and worked well for basic tax situations.

For 2026, that option no longer exists. The program was not renewed, which means millions of taxpayers: including right here in New Haven: need to find a new way to file.

If your tax situation is simple, this isn't a disaster. If you've got side income, rental properties, business deductions, or dependents with specific credits, you'll want to choose your filing method carefully. Miss a deduction, and you could leave hundreds or thousands of dollars on the table.

Your 5 Best Free and Affordable Tax Filing Options in New Haven

Option 1: IRS Free File Guided Tax Software

Who qualifies: Taxpayers with an Adjusted Gross Income (AGI) of $89,000 or less in 2025.

How it works: The IRS partners with eight trusted tax software companies that offer free guided tax preparation. Each partner sets its own eligibility requirements based on age, income, state residency, and military status.

Key benefits:

• Guided questions walk you through your entire return
• Guaranteed accurate calculations
• Some partners include free state tax filing
• No hidden fees or upselling if you access through the official IRS portal

How to access: Always go through IRS.gov/FreeFile. Never visit a partner's commercial website directly, or you may get charged.

Best for: New Haven residents with straightforward tax situations who earn under $89,000 and feel comfortable using software without live help.

Option 2: IRS Free File Fillable Forms

Who qualifies: Any taxpayer at any income level.

How it works: You manually enter your tax information into online fillable forms. The IRS provides instruction guidance, but you do all the work yourself.

Key benefits:

• Completely free regardless of income
• No software limitations
• Available to everyone

The catch: You need to know what you're doing. These forms don't guide you through deductions or credits. If you miss something, you miss out on money.

Best for: Tax-savvy New Haven residents with simple returns or those who've filed the same way for years and know exactly what to claim.

Option 3: VITA (Volunteer Income Tax Assistance)

Who qualifies: Taxpayers who earn $67,000 or less, persons with disabilities, limited English speakers, and elderly taxpayers.

How it works: IRS-certified volunteers prepare your tax return for free at community locations throughout New Haven and Connecticut.

Key benefits:

• Free basic tax preparation
• Face-to-face assistance
• Volunteers are trained and certified by the IRS
• Ideal for taxpayers who need help but can't afford professional services

How to find a location: Use the IRS VITA Locator Tool or call 2-1-1 for local New Haven sites.

Best for: New Haven residents who qualify by income and prefer in-person help over software.

Option 4: Tax Counseling for the Elderly (TCE)

Who qualifies: Typically taxpayers age 60 and older, though anyone can use the service.

How it works: Similar to VITA, IRS-certified volunteers provide free tax preparation with a specialization in pension and retirement-related questions.

Key benefits:

• Free preparation with expertise in senior tax issues
• In-person assistance
• Focus on Social Security, pensions, and retirement income

How to find a location: Check the IRS TCE Locator Tool or contact local senior centers in New Haven.

Best for: Retired New Haven residents with questions about Social Security income, pensions, and retirement accounts.

Option 5: Local Professional Tax Preparers Like Jose's Tax Service

Who qualifies: Anyone who wants professional help, personalized advice, and maximum refunds.

How it works: You work directly with a licensed tax professional who knows Connecticut tax law, New Haven-specific deductions, and how to maximize your refund.

Key benefits:

• Expert review of your entire tax situation
• Identification of deductions and credits you'd miss on your own
• Year-round support if you get IRS notices
• Local service with face-to-face meetings
• Peace of mind knowing a professional handled your return

The investment: Affordable flat fees or hourly rates that often pay for themselves through larger refunds.

Best for: New Haven taxpayers with side hustles, rental income, small businesses, multiple income streams, or anyone who wants to ensure they're getting every dollar they deserve.

Which Option Is Right for You?

Choose free software (Option 1) if your tax situation is simple, you earn under $89,000, and you're comfortable navigating questions on your own.

Choose fillable forms (Option 2) if you're confident in your tax knowledge and have a straightforward return.

Choose VITA or TCE (Options 3 and 4) if you qualify by income or age and want free in-person help.

Choose a local tax professional (Option 5) if you have any complexity in your taxes, run a business, have rental income, freelance, or simply want to maximize your refund without the stress.

Don't Leave Money on the Table

Here's the reality: tax software is designed for simple situations. The moment you have business income, 1099 forms, rental properties, or multiple state filings, you're in territory where professional help pays for itself.

A qualified tax preparer doesn't just file your return. They find deductions you didn't know existed. They catch errors before the IRS does. They answer your questions in plain English instead of tax code jargon.

At Jose's Tax Service, we've helped New Haven residents navigate tax season for years. We know Connecticut tax law inside and out. We understand local business owners, side hustlers, and families trying to keep more of what they earn.

File Smart This Year

The IRS Direct File program may be gone, but you still have options. Choose the one that fits your situation, your comfort level, and your financial goals.

If you're not sure which route to take, start with a conversation. Ask questions. Get clarity before you file.

Need help deciding? Contact Jose's Tax Service today. We'll review your situation and help you determine the best filing option for 2026: whether that's free software, professional preparation, or something in between.

Tax season is here. File with confidence.