New Jersey Residents will be Eligible to Use Free Tax Filing Option in Filing Year 2025

TRENTON – Governor Phil Murphy and United States Department of the Treasury Deputy Secretary Wally Adeyemo on July 24th, 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.
 
“The Direct File tool is revolutionary to our federal tax filing process, and it will make a world of difference for taxpayers in New Jersey and across the country. Every year, when tax season rolls around, people are forced to put on their personal accounting hats. For many this can be a stressful—and expensive—time,” said Governor Phil Murphy. “By cutting costly, for-profit tax filing software out of the equation with the free Direct File tool, we are saving individuals and families in our state time and money. I commend the U.S. Department of Treasury and the Internal Revenue Service for making this critical resource available, and I am thrilled that it will be an option for New Jerseyans in the coming Filing Season.”
 
“Thanks to President Biden’s Inflation Reduction Act, more than 1 million New Jerseyans will be able to file their taxes online for free, directly with the IRS in Filing Season 2025. Direct File will save New Jersey taxpayers time and money and help ensure they receive the tax benefits for which they are eligible,” said U.S. Secretary of the Treasury Janet L. Yellen. “Direct File is one of the many ways the Biden-Harris Administration is working to lower costs in everyday life, and we are pleased to welcome New Jersey as the next state to offer this new free option to taxpayers.” 
 
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. 
 
“Direct File will provide New Jersey taxpayers with an innovative new, free and efficient tax filing option,” said New Jersey State Treasurer Elizabeth Muoio.“At the New Jersey Department of Treasury we understand how expensive and time-consuming tax preparation can be, and we look forward to working with our partners at U.S. Treasury to ensure our residents have access to this exciting new program, in the coming tax year and beyond.”
 
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. 
 
"Many low- and moderate-income families depend on federal and state tax refunds to help pay for their expenses, save for emergencies, or even pay down debt," said Maura Collinsgru, Director of Policy and Advocacy for New Jersey Citizen Action. "Direct File gives New Jerseyans another free option to obtain timely tax returns. We applaud the Murphy administration for making New Jersey one of the first states to make Direct File available to its residents."

"Free, easy-to-use tax filing will save New Jersey families time and money, while getting them the tax credits and benefits they deserve," said Peter Chen, Senior Policy Analyst at New Jersey Policy Perspective (NJPP). "National research has shown that for every dollar spent on Direct File, tax filers receive $106 in tax credits. When this program is fully rolled out, even more families will receive the Child Tax Credit and Earned Income Tax Credit, keeping New Jersey affordable and the best place to raise a family in the country."