New York announces free tax-filing tool after IRS partnership
Starting March 12, eligible New Yorkers will be able to file their taxes at no cost, thanks to a new tool from the civic technology nonprofit Code for America and a pilot program from the Internal Revenue Service.
New York Gov. Kathy Hochul on Thursday announced the launch date for FileYourStateTaxes, an online portal integrated with IRS Direct File pilot program to help residents file their state and federal tax returns for free. According to the announcement, the digital services from Code for America and the IRS have undergone testing over the last several weeks and are now publicly available during their final beta-testing phase.
“Filing your taxes should be free and simple,” Hochul said in a press release. “Thanks to our partnership with Code for America and the IRS, New York is delivering on its commitment to helping New Yorkers access vital government services, meet their tax obligations, and recover tax benefits.”
The announcement follows an invitation the IRS made to states last summer to collaborate on the free tax-filing system. In a letter to the Federation of Tax Administrators, IRS Commissioner Danny Werfel last July said a recent study had shown that most U.S. taxpayers were interested in filing their taxes directly to the government for free. The idea was that a free, government-run system for filing taxes directly to the IRS would augment the agency’s existing e-file option, which is available to individuals with an adjusted gross income of $73,000 or less.
“Direct File is a great new tool that will allow certain New York taxpayers to file their federal and state taxes for free – saving hundreds of dollars in tax preparation fees,” Amanda Hiller, Acting Commissioner for the Department of Taxation and Finance, said about the new filing tool. “I urge taxpayers to check to see whether it’s right for them.”
FileYourStateTaxes is one of several free or low-cost tax filing options for New Yorkers. Other free file services for low-income New Yorkers include Free File Alliance, a tax preparation company that makes free tax software available for those who earn $79,000 or less.
To qualify for New York’s free tax-filing tool, participants must live New York full time and claim wages, Social Security benefits, unemployment benefits, or up to $1,500 of interest, as their sole income sources, with no income earned from another state.
