Filing Taxes in NJ Just Got Easier for the 2025 Tax Season

taxes

Filing Taxes in NJ Just Got Easier for the 2025 Tax Season

taxes

Staff

On October 3, the Internal Revenue Service (IRS) announced the expansion of its Direct File program to New Jersey for the 2025 tax filing season. This program will also be available in 23 other states, allowing eligible residents to access this free e-filing service.

States Joining Direct File for the 2025 Tax Season

Alaska, Connecticut, Idaho, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin.

Direct File aims to simplify tax filing for millions of Americans. It provides step-by-step guidance for federal tax returns and is accessible via phones, tablets, and computers.

With New Jersey’s participation, residents gain a cost-free option for filing taxes, making the process easier for families and individuals. The 2025 season will feature improvements and an expanded range of tax situations covered. Last year’s pilot program focused on basic income sources, while this year will include 1099 forms for interest income over $1,500, retirement income, and reporting for the Alaska Permanent Fund dividend.

New Jersey taxpayers will also benefit from support for various tax credits, including the Earned Income Tax Credit, Child Tax Credit, Child and Dependent Care Credit, Premium Tax Credit, and Credit for the Elderly and Disabled. These updates address the diverse financial situations of residents, particularly working families with complex tax scenarios.

The 2025 season will introduce new features, such as a chatbot for eligibility checks, live chat support in English and Spanish, and enhanced security options for user authentication. IRS Commissioner Danny Werfel emphasized that improving user experience remains a top priority.

The expansion of the Direct File program to New Jersey offers a valuable resource, especially for those who previously relied on costly tax preparation services. The IRS based this expansion on taxpayer feedback indicating a strong need for no-cost electronic filing options. More than 30 million taxpayers in participating states will benefit from Direct File, reducing the financial stress of tax preparation. Currently, Direct File is not available but will reopen for the 2025 filing season.