New Jersey has expanded its Direct File program to include residents with retirement income, making free tax filing available to approximately 400,000 more people. Launched in January 2025, the online tool at DirectFile.nj.gov now accepts returns from those receiving distributions from employer-sponsored retirement accounts like 401(k)s, pensions, annuities, and other plans that typically issue 1099-R forms.
Governor Phil Murphy announced the expansion on March 11, highlighting that Direct File has already helped thousands of residents save money on tax preparation. The program could save eligible filers around $160 in tax preparation fees.
To qualify, New Jersey residents must have:
- Lived in the state for all of 2024
- Earned all 2024 income in New Jersey
- Income below certain thresholds
- The same filing status for both federal and state returns
The program automatically enrolls eligible users in money-saving tax credits, including the Earned Income Tax Credit and Child Tax Credit. It offers support in both English and Spanish, works on all devices, and provides live chat assistance for questions.
Direct File is part of the expanded IRS Direct File program, which helped 140,000 taxpayers claim over $90 million in refunds last year across 12 states. The filing deadline is approaching, so eligible seniors are encouraged to use this free, secure online filing option soon.
