New Jersey Is Joining IRS Direct File, Bringing Free Tax Filing To 1.3 Million Residents

Governor Phil Murphy and United States Department of the Treasury Deputy Secretary Wally Adeyemo today announced that, beginning in Filing Season 2025, New Jersey residents will be able to utilize Direct File to submit their federal tax returns. More than 1.3 million New Jerseyans will be eligible to use the free online filing tool during the next Filing Season.

On the heels of a successful pilot run during the 2024 Filing Season, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) are making Direct File a permanent, free tax filing option available to all 50 states and the District of Columbia, beginning in Filing Season 2025. During its pilot run in 12 states, Direct File enabled 140,000 taxpayers to claim more than $90 million in refunds, saving an estimated $5.6 billion in filing costs.

With Direct File, taxpayers have a streamlined avenue to file their federal tax returns online for free. This program, made possible by the Inflation Reduction Act, empowers residents to file with ease and without having to pay the fees associated with big tax software companies.

During its pilot program, Direct File users reported a high degree of satisfaction and quick answers to their filing questions. In a GSA Touchpoints survey of more than 11,000 Direct File users, 90 percent of respondents ranked their experience with Direct File as “Excellent” or “Above Average.” A majority of survey respondents who filed taxes in the prior year reported having to pay to prepare their taxes last year. Among survey respondents, 47 percent of users paid to file their taxes last year and 16 percent did not file last year at all.

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