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New Jersey residents can now use a new online tool called IRS Direct File to file their federal and state tax returns for free. Governor Phil Murphy announced that the tool will offer live chat support and a secure way to file taxes. More than 1.3 million New Jerseyans are expected to qualify for this service.
The IRS Direct File tool, which was first piloted in 12 states last year, allows taxpayers to file their federal tax returns without the need for costly, for-profit software. During the pilot, 140,000 taxpayers claimed over $90 million in refunds, saving an estimated $5.6 billion in filing costs.
Governor Murphy praised the tool, saying it will save individuals and families time and money. "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," he said.
The program is supported by the Inflation Reduction Act, which aims to make tax filing more accessible and affordable. New Jersey State Treasurer Elizabeth Muoio emphasized the importance of this initiative, stating that it provides an innovative, free, and efficient tax filing option for New Jersey taxpayers.
The tool is expected to be available in all 50 states and the District of Columbia by the 2025 filing season. Residents can check their eligibility at DirectFile.irs.gov.
