• The IRS has extended the Free File program through 2029, continuing its partnership with a coalition of private tax software companies.
• IRS Free File remains open for 2023 returns through the Oct. 15 federal tax extension deadline.
• Meanwhile, the IRS is weighing future plans for Direct File, a free filing pilot directly with the agency.

The IRS has extended the Free File program through 2029, continuing its partnership with a coalition of private tax software companies that allow most Americans to file federal taxes for free.

This season, Free File processed 2.9 million returns through May 11, a 7.3% increase compared to the same period last year, according to the IRS.

"Free File has been an important partner with the IRS for more than two decades and helped tens of millions of taxpayers," Ken Corbin, chief of IRS taxpayer services, said in a statement Wednesday. "This extension will continue that relationship into the future."

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"This multi-year agreement will also provide certainty for private-sector partners to help with their future Free File planning," Corbin added.

IRS Free File remains open through the Oct. 15 federal tax extension deadline.

You can use Free File for 2023 returns with an adjusted gross income of $79,000 or less, which is up from $73,000 in 2022. Fillable Forms are also still available for all income levels.  

The future of IRS Direct File

The news comes roughly one month after the agency unveiled numbers for its Direct File pilot program, which provided a free filing option directly with the IRS for certain taxpayers in 12 states.

More than 140,000 taxpayers successfully filed returns using IRS Direct File this tax season, and the program saved filers an estimated $5.6 million in tax preparation fees for federal returns.

The agency expects to decide on the future of Direct File later this spring after input from a "wide variety of stakeholders," IRS Commissioner Danny Werfel told reporters on a press call in April.