As the tax season approaches, Governor Kathy Hochul of New York recently announced an expansion of the eligibility criteria for the free online tax filing tool “Direct File,” aiming to help New York taxpayers save an average of about $260 in tax filing fees. The program is set to open later this month, with an estimated 3.4 million people expected to use it this year.
In 2024, New York State began collaborating with the Internal Revenue Service (IRS) to pilot the “Direct File” program, initially only open to a small fraction of taxpayers with relatively simple tax returns, with about 14,000 people using it, 96% of whom reported a positive experience.
In 2025, the program has expanded its eligibility criteria to cover more tax deductions and different types of income earners. Amanda Hiller, the Acting Commissioner of the New York State Department of Taxation and Finance, stated that with the “Direct File” system, taxpayers can answer some simple questions without having to fill out forms or pay tax preparer fees. The system is secure and reliable, allowing taxpayers to operate it via smartphones, laptops, tablets, or desktop computers. This joint project with the IRS enables taxpayers to file federal and state taxes online for free.
Governor Hochul emphasized that the New York State government has been working to expand the “Direct File” program to provide a faster and more convenient way for taxpayers to file their taxes for free.
In 2024, New Yorkers with incomes not exceeding $200,000 (or $250,000 for joint filers) may qualify to use the system to file federal and state personal income taxes for free. The “Direct File” program is designed to benefit individuals with basic tax filing needs, allowing those with just one or two main sources of income to claim the most common tax deductions and credits.
The tax authorities estimate that 3.4 million New Yorkers will be able to use the “Direct File” program this year. For more information, please visit the tax authority’s website at: https://tinyurl.com/22emm8cy
In addition to “Direct File,” the tax authorities also offer other electronic tax filing options for free.