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Expansion of Direct File Program Can Help Millions of New Yorkers Save an Average of $260
Program Will Open Later This Month
Governor Kathy Hochul today announced New Yorkers will 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. Building on Governor Hochul’s initiative to make New York more accessible and affordable, this program helps the average New York taxpayer save around $260 in tax preparation fees.
“New Yorkers know all too well about the long processes that come with filing taxes, and that is why the state has put significant effort in our tax program to ease those burdens,” Governor Hochul said. “My administration and I have pushed to expand our Direct File program to provide a quick and easy way to file your returns for free - saving hundreds of dollars 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.
Acting New York State Tax Commissioner Amanda Hiller said, “We’re improving and expanding Direct File because filing your taxes doesn’t need to be daunting. With Direct File, you can answer simple questions instead of filling out forms or paying a preparer. It’s a safe, secure system that taxpayers can access from a smartphone, laptop, tablet, or desktop computer.”
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.
Direct File builds on Governor Hochul’s affordability agenda, a multi-billion dollar effort to provide direct financial relief to New Yorkers dealing with high costs of everyday products and services.