N.J., Idaho latest states to join IRS direct tax filing program
Residents in New Jersey and Idaho can now file their federal and state taxes using the IRS’s free online-filing tool, the civic tech nonprofit Code for America announced Thursday.
The new partnerships mean that the IRS’s Direct File program, which allows taxpayers to submit federal tax returns electronically, will be available in 24 states in its first year as a permanent program.
“IRS Direct File will offer significant time- and cost-savings for many New Jerseyans filing their federal taxes this year,” New Jersey Treasurer Elizabeth Maher Muoio said in the announcement. “With the pending addition of FileYourStateTaxes to the State’s offerings, Garden State taxpayers will also be able to realize a more streamlined experience in filing their State taxes that will keep more money in their pockets, and create a more efficient process for State government.”
The IRS began testing Direct File with 12 states earlier this year after drafting a letter to the Federation of Tax Administrators to gauge interest. The program allows taxpayers to file their federal income tax returns directly to the government at no cost.
During the pilot program, several states, including Arizona and New York, provided companion state tax filing tools that allowed Direct File users to file their state returns.
New Jersey and Idaho will eventually have access to FileYourStateTaxes, Code for America’s state tax filing tool, which it developed during the 2024 tax filing season. In May, the IRS announced it would make the Direct File program permanent following positive user feedback. Shortly after, Code for America announced it would expand the program by bringing FileYourStateTaxes to additional states next year.
