01/27/2025 | Press release | Distributed by Public on 01/27/2025 11:19
Free Online Tax Filing for Millions of New Yorkers Starting on January 27th
Taxpayers Can Save Hundreds in Tax Prep Fees
Part of Governor's Affordability Agenda and Ongoing Effort To Improve Government Services
Governor Kathy Hochul today urged New Yorkers to consider using the Direct File program in New York State to ease the burden of filing taxes. The joint project with the IRS, available starting today, allows taxpayers to file their federal and state taxes online at no cost. Building on Governor Hochul's initiative to make New York more affordable, this program helps the average New York taxpayers save around $260 in tax preparation fees.
"Direct File is a common-sense approach to filing taxes," Governor Hochul said. "If you have a basic return, you'll find that it's easy to complete the process and that you can save hundreds of dollars in tax preparation fees."
The Tax Department estimates that 3.4 million New Yorkers will be able to use Direct File this year. To find out if you're eligible, visit the New York State Tax Department's webpage.
New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller said, "Direct File is a safe, secure system that you can access from a smartphone or desktop computer. Qualified New Yorkers can answer simple questions instead of filling out forms or paying a preparer to complete their income return."
New York piloted Direct File with the IRS in 2024. In its first year, the program was open for a limited time to a limited number of taxpayers. Some 14,000 New Yorkers used Direct File last year and 96 percent reported a positive experience.
The 2025 Direct File Program - available starting today - expands eligibility, covering more tax credits and different types of income. The Tax Department estimates that 3.4 million New Yorkers will be able to use Direct File this year. New Yorkers with 2024 wages of up to $200,000, or $250,000 if filing a joint return, may qualify.
Direct File is part of Governor Hochul's ongoing effort to save New Yorkers money and improve government services. As part of her FY 2026 Budget, Governor Hochul proposed a middle class tax cut to deliver nearly $1 billion in tax relief to more than 8.3 million New Yorkers. When fully phased in, the middle class tax cut will deliver hundreds of dollars in average savings to nearly 77 percent of filers - representing three out of every four taxpayers. Additionally, Governor Hochul proposed New York's first-ever inflation refund that will put $3 billion back in the pockets of 8.6 million taxpayers. Joint tax filers who make $300,000 or less will receive a $500 payment and all single New York taxpayers who make $150,000 or less will receive a $300 payment. Governor Hochul also proposed a vast expansion of New York's Child Tax Credit that will double or triple the current credit in many cases, offering up to $1,000 annually per child under four and up to $500 per child aged four to 16. This marks the largest increase in the credit's history, significantly surpassing the current maximum of $330 per child.
More information on the Governor's Affordability Agenda is available online.
For more information on Direct File, visit the New York State Tax Department's webpage.