New Jersey to join IRS Direct File program, saving taxpayers time and money

TRENTON, N.J. (KYW Newsradio) — Starting next year, when New Jersey taxpayers file their 2024 income taxes, they’ll be able to do so directly with the IRS, thanks to a program announced Wednesday.

An estimated 1 million New Jersey tax filers will qualify for the Direct File program. Gov. Phil Murphy says it could be as many as 1.3 million people. “Direct File will allow New Jersey families with simple tax forms to file federal and state taxes online for free. This service is seamless, it’s swift, and it’s secure,” he said.

According to an IRS survey, the average American taxpayer spends $270 and 13 hours filing their taxes. U.S. Treasury Deputy Secretary Wally Adeyemo says a pilot program in 12 other states was very successful, cutting filing times and saving users an estimated $5.6 million in fees. “140,000 people [used] it during the pilot phase,” Adeyemo said.

“For many families, filing taxes means choosing to spend their hard earned cash just to file taxes on time or spending seemingly countless hours they don’t have sorting through receipts and forms,” said Murphy.

Officials say the online program will help guide people through the process to ensure they are getting all of the rebates and credits available to them. In a statement, the Treasury Department said pilot users claimed more than $90 million in refunds.

Direct File users must have a simple W-2 or 1099 form for Social Security or unemployment income. Families earning less than $200,000 and individuals below $125,000 are eligible. People who earn money from tips, gig work, renting property and online payment apps are ineligible for Direct File.