Mercer Times

Governor Phil Murphy and U.S. Department of the Treasury Deputy Secretary Wally Adeyemo have announced that New Jersey residents will be able to use Direct File to submit their federal tax returns starting in Filing Season 2025. This initiative will allow over 1.3 million New Jerseyans to access a free online filing tool.

"The Direct File tool is revolutionary to our federal tax filing process, and it will make a world of difference for taxpayers in New Jersey and across the country," stated Governor Murphy. He emphasized that this service would save individuals and families time and money by eliminating the need for costly tax filing software.

U.S. Secretary of the Treasury Janet L. Yellen highlighted the benefits brought by President Biden’s Inflation Reduction Act, stating, "Thanks to President Biden’s Inflation Reduction Act, more than 1 million New Jerseyans will be able to file their taxes online for free, directly with the IRS in Filing Season 2025."

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) plan to make Direct File a permanent option available nationwide from Filing Season 2025 after a successful pilot run in 12 states during Filing Season 2024. The pilot program allowed 140,000 taxpayers to claim over $90 million in refunds while saving an estimated $5.6 billion in filing costs.

New Jersey State Treasurer Elizabeth Muoio expressed enthusiasm about this development: "Direct File will provide New Jersey taxpayers with an innovative new, free and efficient tax filing option." She noted that the state treasury department is eager to collaborate with U.S. Treasury partners to ensure residents can access this program.

Feedback from users during the pilot program was positive, with a GSA Touchpoints survey showing that 90 percent of respondents rated their experience as “Excellent” or “Above Average.” The survey also revealed that many users had previously paid for tax preparation services.

Maura Collinsgru from New Jersey Citizen Action praised the initiative: "Direct File gives New Jerseyans another free option to obtain timely tax returns." Peter Chen from New Jersey Policy Perspective (NJPP) added that national research indicates significant financial benefits for tax filers using Direct File.