Direct File expansion will allow New Yorkers to file taxes online for free, Governor says

New Yorkers will be able to file their taxes online for free thanks to Direct File expansion, a simple, self-service tool.

This development stems from an announcement on Friday via the office of Governor Kathy Hochul. “My administration and I have pushed to expand our Direct File program to provide a quick and easy way to file your returns for free – saving hundreds of dollars in tax preparation fees,” she said.

“New Yorkers know all too well about the long processes that come with filing taxes, and that is why the state has put significant effort in our tax program to ease those burdens.”

New York piloted Direct File with the IRS in 2024. In its first year, the program was open for a limited number of taxpayers – those with relatively simple returns.

Some 14,000 New Yorkers participated and 96 percent reported a positive experience, the Governor's Office reported.

The 2025 program expands eligibility, covering more tax credits and different types of income. New Yorkers with 2024 income of up to $200,000 – 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.

Direct File is a great option for those with basic returns – those with one or two main sources of income claiming the most common deductions and credits.

On average New York taxpayers saved $260 in tax preparation fees by using Direct File. The Tax Department estimates that 3.4 million New Yorkers will be able to use Direct File this year.

Image via the office of New York Governor Kathy Hochul.