New Yorkers will now be able to file their taxes online for free thanks to Direct File expansion, a simple, self-service tool. The joint project with the IRS allows taxpayers to file their federal and state taxes online at no cost. According to the Governor’s Office, this program will help the average New York taxpayer save around $260 in tax preparation fees.
New York piloted Direct File with the IRS in 2024. In its first year, the program was open for a limited number of taxpayers – those with relatively simple returns. Some 14,000 New Yorkers participated and 96 percent reported a positive experience.
The 2025 program expands eligibility, covering more tax credits and different types of income.
New Yorkers with 2024 income of up to $200,000 – or $250,000 if filing a joint return – may qualify to use Direct File to file their federal and state personal income tax returns for free. Direct File is a great option for those with basic returns – those with one or two main sources of income claiming the most common deductions and credits.
On average New York taxpayers saved $260 in tax preparation fees by using Direct File. The Tax Department estimates that 3.4 million New Yorkers will be able to use Direct File this year. To find out whether Direct File is right for you, visit the Tax Department’s website.
In addition to Direct File, the Tax Department offers other e-file options to file your taxes for free.
This year’s tax filing season officially opens later this month and concludes on April 15th. The Direct File program will be available when the tax filing season opens.
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