The New York State Department of Taxation and Finance announced on Jan. 26 that free tax filing software (Free File) is now available on its website, www.tax.ny.gov, to electronically prepare and submit both federal and state income tax returns at no charge. Taxpayers with income of $72,000 or less in 2020 can complete and submit their federal and New York State income tax returns online at no cost in advance of the tax filing season, which officially begins Friday, Feb. 12.

 

New York State Commissioner of Taxation and Finance, Michael Schmidt, said that nearly 255,000 New York taxpayers used the Free File software last year, saving themselves an estimated $51 million in the process. “We encourage you to get engaged in the process and take advantage of this service—it’s easy, fast and secure,” he said.

 

To be directed to the free filing options on the State tax department’s website, residents should click on “Free File Your Income Tax Return” and complete the relevant tax return accordingly. Tax department officials said residents can save on preparation fees, prevent costly errors, and ensure that they receive any refunds directly they are owed in the most efficient way possible.

 

The State tax department has also produced a series of video tutorials to assist New Yorkers with the tax return filing process. Topics range from gathering the necessary documents to choosing the right software. The videos can be viewed on the “Get Ready to E-file Your Income Tax Return” section of the department’s website.

 

Department officials said by availing of the Free File software, residents can receive the refunds they’re owed up to two weeks sooner, and added that filing electronically and choosing direct deposit is safer, faster, and more efficient than sending paper returns and checks through the mail.

 

To use direct deposit, residents should check “direct deposit” on their tax return, then enter their bank’s nine-digit routing number along with their account number. For checking accounts, this information is available on checks. For savings accounts, residents are requested to contact their respective banks.

 

Meanwhile, at New York City level, the government recently launched a new tax service called NYC Free Tax Prep, accessible at nyc.gov/taxprep in order to help New Yorkers who earned $68,000 or less in 2020 file their tax returns for free.

 

With the help of IRS-certified volunteer tax preparers familiar with VITA (The Volunteer Income Tax Assistance program) and TCE (tax counseling for the elderly), City officials said residents can file their taxes safely now, and transmit the returns to the IRS when the department begins the tax season on Friday, Feb. 12. The tax prep service is available in several languages and any resident who has more questions can dial 311 for more information.

 

City tax department officials warned New Yorkers that any tax preparation agent promising a tax refund before Feb. 12 may actually be selling their clients a Refund Application Loan (RAL) which may come with fees and high interest rates.