How Navo started from Direct File, and what we added

Navo is a private company and isn't affiliated with or endorsed by the IRS.

The short answer: the IRS built a free tax filing tool called Direct File and later published its code for anyone to use. Navo started from that code. We kept the parts that made it good, like plain questions and math from tested rules, and added the tax situations it didn't cover, so more people can file free.

What Direct File was

For two filing seasons, the IRS ran its own free tax filing tool, Direct File. People in the states where it was offered could file a simple federal return directly with the IRS, at no cost, on their phone or computer.

It was built by a public team with a clear idea: ask each filer only the questions that apply to them, in plain language, and get the math exactly right. It handled common situations like wages, Social Security, unemployment, some interest income and common credits, and it told people up front when their return was outside what it could do.

The IRS told states that Direct File would not be available in the 2026 filing season. Here's how to file free without it.

The code is public

In 2025 the IRS published Direct File's code. As a work of the US government, it's in the public domain, which means any company or person can use it and build on it. That's where Navo started.

Why start there

Tax software has two hard parts.

The math. Thousands of rules, with exceptions, phase-outs and rounding rules, that change every year. Direct File expressed those rules in a structured way the computer follows exactly, rather than in hand-written one-off code. That makes the math checkable and testable.

The questions. Asking each filer only what applies to them, in plain language, without missing anything. Direct File's question flow was designed and tested with real filers over two seasons.

Starting from it meant we didn't have to rebuild that foundation, and we could focus on what it didn't yet do.

What we added

Direct File was built for fairly simple returns. Navo has extended it to handle more of the situations people actually have. For the 2026 tax year, that includes:

More kinds of income

Self-employment and gig income (Schedule C and self-employment tax), including the qualified business income deduction
Selling stocks and other investments (Schedule D and Form 8949)
Rental income (Schedule E)
IRA and retirement plan withdrawals (Form 1099-R)
Gambling winnings (Form W-2G)

More deductions

Itemized deductions (Schedule A), for people whose deductions are worth more than the standard deduction
IRA contributions, including the traditional IRA deduction
The new deductions for tips, overtime, seniors and car loan interest (Schedule 1-A)

The 2026 tax law

Every rule and amount updated for the 2026 tax year, including the changes in the 2025 tax law. What's new for 2026.

A state return

Ohio state returns, our first state. In Ohio and the nine states with no income tax, Navo files your whole return.

What we rebuilt

Some parts of Direct File only worked because it ran inside the IRS. Navo runs outside the IRS, so we rebuilt those parts:

E-filing. Navo e-files your return with the IRS, the same way other tax software does.
Sign-in. Your Navo account uses its own secure sign-in.
Support. Help comes from Navo, at support@navo.ai.

How we keep the math right

Every time we change Navo's tax engine, we run it against hundreds of test returns and compare every result. If a number changes without a reason we can explain, the change doesn't go out. We check new tax rules against the IRS's own forms and instructions, and AI never decides the numbers on your return. Why Navo never lets AI do the math.

What stayed the same

The things we liked most about Direct File are still how Navo works:

It's free. Filing with Navo is free for the 2027 season, for everyone.
Plain questions. You answer questions about your life, not tax jargon.
You see your return before you sign it.
The math comes from tested rules, never from a guess.
Honest limits. If your return includes something Navo doesn't handle yet, Navo tells you early. Why that matters.

What's next

We're adding more each year, starting with the situations our filers ask about most. We're also building a way to start your Navo return from inside an AI assistant. Learn more.

Start your federal return

Frequently asked questions

Is Navo run by the IRS? No. Navo is a private company. It started from the public code of the IRS's Direct File, and isn't affiliated with or endorsed by the IRS.

If I used Direct File, will Navo feel familiar? Probably. The step-by-step, plain-question approach comes from Direct File.

Why is Navo free? Filing with Navo is free for the 2027 season. Starting from public code means we didn't spend years rebuilding the basics, which keeps our costs down.

Related guides

Navo is a private company and isn't affiliated with or endorsed by the IRS. Direct File is a program of the Internal Revenue Service.