Qualifying Taxpayers May Be Eligible to File for Free
By Cooper Smith
New York Attorney General Letitia James recently issued a consumer alert advising New Yorkers to be wary about common tax preparation scams and encouraging them to check to see if they are eligible for the free Direct File service before Tax Day on April 15. The Direct File program allows qualifying taxpayers to file their federal and state taxes online at no cost, saving the average taxpayer approximately $260 in tax preparation fees.
The New York Tax Department estimates that 3.4 million New Yorkers will be eligible to use Direct File this year. New Yorkers with 2024 wages of up to $200,000, or $250,000 if filing jointly, may qualify for this free service. To determine eligibility and get started, taxpayers are encouraged to take the following steps:
- Check if you are eligible for New York State Direct File to file New York State personal income tax return
- Check if you’re eligible for IRS Direct File to file federal personal income tax returns
- If eligible, begin federal returns on the IRS Direct File website. After filing federal returns, you will be redirected to New York State Direct File to being filing New York State taxes free of charge.
In addition to encouraging the use of Direct File, James issued a series of tips to help New Yorkers avoid common tax scams such as:
- claiming you owe back taxes and insisting on immediate payment through prepaid credit cards or gift cards, which legitimate government agencies will never request
- misleading individuals into thinking they owe money without a legitimate notice providing the agency and reason in writing
- making false claims of free tax preparation services, only to charge for those services afterwards
- claims of quicker tax refunds followed by a fee and high interest rates
- sending unsolicited calls, texts, or emails asking for personal or financial information
Other tips for tax filers include:
- Legitimate government organizations will never threaten arrest or deportation over tax debts, as well as insisting on payment through a prepaid credit card, gift cards or wire transfers.
- Only use reputable companies for tax preparation, and carefully review your tax return before signing.
- Ensure your tax preparer has the proper qualifications and history through the Better Business Bureau and provides you with a signed statement, including their Preparer Tax Identification Number (PTIN). Also, make sure to get a statement for the services provided looking out for hidden fees or interests. For more information, please consult New York’s Consumer Bill of Rights Regarding Tax Preparers.
“While tax season can be stressful, New Yorkers deserve peace of mind knowing that they’ll be protected from scams and won’t have to pay hundreds of dollars just to file their taxes,” James said. “The Direct File program is a safe and easy way to file taxes for free and save hundreds of dollars. I encourage everyone to be on the lookout for fraudsters who try to take advantage of tax season to cheat New Yorkers, and report any suspected frauds to my office.”
New Yorkers who suspect they have been targeted by tax fraud should report it immediately to the Attorney General’s Office online or by calling 800-771-7755.