(WNY News Now) – New York State is set to revolutionize tax filing for its residents through a groundbreaking partnership with Code for America, enabling eligible taxpayers to file their state and federal taxes electronically for free. This development is part of a limited, scaled pilot program to integrate state e-filing tools with the IRS’ federal e-filing tool, commencing in 2024.
New York – New York State is embarking on a groundbreaking initiative in collaboration with Code for America to simplify and modernize the tax filing process for eligible residents. Governor Hochul announced this innovative partnership, emphasizing its significance in improving accessibility to tax benefits.
“Thanks to this first-of-its-kind partnership, New York is taking a major step toward modernizing our tax system and making it even easier for New Yorkers to access their tax benefits,” Governor Hochul said. “No one should have to navigate complex processes or pay out of their pocket to file their taxes, and starting next year, we’re equipping New Yorkers with a new, innovative, free tool to give taxpayers more choices to file.”
Code for America, a prominent civic tech nonprofit, will be responsible for developing the filing software in 2024. Once implemented, eligible New Yorkers can seamlessly e-file their state and federal tax returns, eliminating the need for costly tax preparers. This initiative aims to promote equitable access to tax refunds, especially for low-income families, while simplifying the tax filing process.
Acting Commissioner of the New York State Department of Taxation and Finance, Amanda Hiller, expressed her enthusiasm for this pivotal project, highlighting its convenience, reliability, and cost-effectiveness. This project signals the future of tax administration, with the government offering a user-friendly, free tax return filing service.
Code for America CEO Amanda Renteria explained the transformative potential of the IRS Direct File, emphasizing the significance of this partnership with New York in expanding access to tax refunds and benefits.
The partnership aligns with New York’s commitment to enhancing government services, building on Governor Hochul’s 2023 State of the State pledge to improve access to essential government services.
The New York Department of Taxation and Finance will work closely with Code for America’s experts to develop the state e-filing tool’s scope and capabilities. Eligible taxpayers will have the option to share their federal return information with third-party state filing software after completing their federal returns using Direct File. This streamlined process will simplify the completion of New York tax returns.
Existing options for free file services for low-income New Yorkers will remain available.
Prominent political figures, including Senator Chuck Schumer, Senator Kirsten Gillibrand, Representative Brian Higgins, and Representative Jamaal Bowman, commended this partnership for its potential to save taxpayers money and streamline the tax filing process.
Eligibility criteria for New York’s direct filing tool will be determined by the IRS as part of the federal Direct File Pilot, including specific income types, credits, and deductions.
The IRS Direct File Pilot Program, initiated by the 2022 Inflation Reduction Act, aims to provide taxpayers with various options for filing their federal taxes. This limited pilot program allows the IRS to evaluate the costs, benefits, and operational challenges associated with providing a voluntary Direct File option to taxpayers.
New York, along with Arizona, California, and Massachusetts, will be among the first states to integrate with the IRS’ Direct File pilot in 2024. Taxpayers in nine states without an income tax may also be eligible to participate.
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