More than 1.3 million New Jerseyans will be eligible to use the free tool during the next filing season. (Getty Images)
Filing federal taxes will be easier and cheaper for New Jerseyans after officials announced the state will partner with the IRS on the new free electronic tax return program the agency launched this year.
U.S. Department of the Treasury Deputy Secretary Wally Adeyemo and Gov. Phil Murphy told reporters Wednesday that Direct File will be available to all 50 states in 2025, with Adeyemo saying New Jersey was one of the first states to sign up.
Adeyemo said Direct File is meant to do “two of the most important things we can do” — make life easy for the American people and lower their costs.
“Our hope is that over the course of the next few years, we’ll be in a position where people throughout this country will be able to take part in this innovative product in order to make sure that their tax filing experience is as easy as possible, is free, and also they get the refunds that they deserve,” he said.
The program became available this year in 12 states for people with W-2 income or simple credits and deductions. More than 1.3 million New Jerseyans will be eligible to use the free tool when filing their 2024 taxes next year. The program is offered in English and Spanish.
New Jersey’s state tax system won’t be fully integrated with Direct File yet, officials said. A link will instead direct taxpayers to the state’s separate free filing system for their state returns.
Murphy said it’s unfair that families often must spend money on costly services just to file taxes. He said the new service is “seamless, it’s swift and it’s secure.”
“More than anything, it will help ensure that our state government does what it’s supposed to do, make public services more accessible and more responsive while helping lift our families up rather than weighing them down,” he said.
He also commended the Biden administration for the program, which was jumpstarted with funds from the Inflation Reduction Act in 2022.
Since Direct File launched in March, more than 140,000 taxpayers used it to file their returns, agency officials said. People claimed more than $90 million in refunds, and saved an estimated $5.6 million in filing costs, according to the IRS.
Adeyemo explained it cuts down not just on costs for using filing services, but also on the amount of paper states receive, which will save money for the IRS and state tax agencies as well.
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