Free Tax Filing Option Coming To NJ In 2025

NEW JERSEY — More than 1.3 million New Jersey residents will be eligible to use a free online tool to file their federal tax returns next year, Gov. Phil Murphy's office announced.

Starting in 2025, the federal Direct File program will become a permanent option for New Jersey taxpayers following this year's experimental pilot run in 12 states.

During the pilot program, Direct File helped more than 140,000 taxpayers claim more than $90 million in refunds and save an estimated $5.6 billion in filing costs.

"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," Gov. Murphy said in a statement. "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."

Direct File is designed for filers with straightforward tax returns like W2s or Social Security income and those who take the standard deduction. Other types of income, including those from gig work or other business returns, are not eligible.

More than 1 million Garden State residents will be eligible to use the tool next year, officials said.

During its pilot program, Direct File users reported high satisfaction with the tool. In a survey of more than 11,000 users, 90 percent of respondents ranked their experience as "excellent" or "above average."

"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," Maura Collinsgru, director of Policy and Advocacy for New Jersey Citizen Action, said in a statement. "Direct File gives New Jerseyans another free option to obtain timely tax returns."

Learn more about Direct File online.