NY expands Direct File free tax prep program

New Yorkers with 2024 income of up to $200,000 for individual filers 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 this year, according to a recent announcement by Governor Kathy Hochul.

The 2025 program expands eligibility, and covers more tax credits and different types of income than last year.

Last year Direct File was open only to a select few New Yorkers with low salaries and simple returns. Now families earning up to $250,000 may use the service for free, as long as they have only one or two main sources of income and claim the most common deductions and credits.

Hochul’s announcement estimated that Direct File could save taxpayers around $260 in tax preparation fees.

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.”

The state Tax Department estimates that 3.4 million New Yorkers will be able to use Direct File this year. More information on Direct File can be found at tax.ny.gov/pit/efile/direct-file.