State leaders announced the launch of the Direct File program in New York State, a free online tax filing initiative aimed at saving taxpayers hundreds of dollars in preparation fees. Available beginning January 27, the program is part of Governor Kathy Hochul’s agenda to make New York more affordable and improve government services.
Direct File, a partnership with the IRS, allows taxpayers with basic returns to file federal and state taxes online at no cost. On average, users can save $260 in tax preparation fees. “Direct File is a common-sense approach to filing taxes,” said Governor Hochul. “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 New York State Department of Taxation and Finance estimates 3.4 million residents qualify for the program this year. Those with 2024 wages of up to $200,000, or $250,000 for joint filers, may be eligible. Acting Tax Commissioner Amanda Hiller emphasized the program’s accessibility, noting, “Direct File is a safe, secure system that you can access from a smartphone or desktop computer.”
The program was piloted in 2024 for a limited time and received positive feedback, with 96% of the 14,000 participants reporting a positive experience. This year, the program expands eligibility and covers more tax credits and income types.
Direct File is part of broader affordability measures introduced by Governor Hochul. The FY 2026 budget includes a middle-class tax cut expected to save 8.3 million New Yorkers nearly $1 billion annually, an inflation refund program providing up to $500 per filer, and a significant expansion of the Child Tax Credit. The enhanced credit could reach up to $1,000 annually per child under four, offering historic relief to families.
Eligible taxpayers can visit the New York State Tax Department’s website to learn more about Direct File and check their eligibility.
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