New York Governor Kathy Hochul announced on 3 January 2024 that the state will participate in the IRS Direct File program starting with the 2025 tax filing season.

The joint project with the Internal Revenue Service (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 programme helps the average New York taxpayer save around USD 260 in tax preparation fees, benefiting 3.4 million New Yorkers.

“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 programme to ease those burdens,” Governor Hochul said. “My administration and I have pushed to expand our Direct File programme 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 programme was open for a limited number of taxpayers – those with relatively simple returns. Some 14,000 New Yorkers participated and 96% reported a positive experience. The 2025 programme expands eligibility, covering more tax credits and different types of income.

New Yorkers with 2024 income of up to USD 200,000 – or USD 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.

This year’s tax filing season officially opens later this month and concludes on 15 April 2025. The Direct File programme will be available when the tax filing season opens.

Earlier, the US Internal Revenue Service released IR-2024-258 on 3 October 2024, announcing that Direct File will be available for the 2025 tax filing season in double the number of states than last year’s pilot, and it will cover a wider range of tax situations, greatly expanding the number of taxpayers eligible to use the free e-filing service.