Free Tax Filing In New Jersey Faces Challenge From Elon Musk

NEW JERSEY — Did Elon Musk “delete” a free federal tax filing service that just became available to New Jersey residents? For now, it appears not to be the case – despite a controversial social media post from the world’s richest person.

Musk has seen scathing criticism and vocal support as he carries out a campaign to trim federal government spending as the head of the Trump Administration’s Department of Government Efficiency (DOGE).

Earlier this week, Musk posted on X that the agency which helped to create the IRS Direct File program “has been deleted.”

The online tax filing tool – which became available to New Jerseyans for the first time this year –provides taxpayers with a free way to file their federal and state individual returns.

As per a reader context note on Musk’s own X post: “Contrary to the post’s claim, the service does not put ‘the government in charge of preparing people’s tax returns for them.”

Musk’s post has caused confusion for many taxpayers, with the IRS declining to comment on the issue so far. However, the IRS Direct File website is still operational as of Friday – leading many pundits to speculate that it will remain intact for the 2025 tax season.

Democrat and Republican lawmakers continue to struggle over the future of the program.

According to the governor’s office, more than a million New Jersey residents will be eligible to use IRS Direct File – and potentially save hundreds of dollars each.

“This is a free, convenient online tool for residents to file directly with the government in a secure way they can trust,” Gov. Phil Murphy said.

The governor’s office said that after launching in 12 states last year, 140,000 taxpayers have claimed more than $90 million in refunds and saved an estimated $5.6 million in filing fees.

The average U.S. resident typically spends about $140 preparing their returns each year.

Murphy isn’t alone – other supporters say the program has been a success.

Americans spend 1.7 billion hours or $31 billion annually to file their taxes, even though the overwhelming majority should be able to file in mere minutes – and for free, according to the Coalition for Free and Fair Filing.

“Taxpayers shouldn't have to pay exorbitant fees to predatory for-profit companies just to file their taxes,” said Lindsay Owens, executive director of Groundwork Action.

However, critics have called the program “unauthorized and wasteful,” and have argued that having the IRS act as tax assessor, collector, preparer and enforcer – all in one – is a “deeply concerning and a clear conflict of interest.”

More than two dozen Republican lawmakers recently sent a letter to President Donald Trump – which was cc’d to Musk and the DOGE – asking him to put the brakes on the free filing program.

The lawmakers noted that the IRS also runs other free tax filing programs, like IRS Free File – a separate program from IRS Direct File.

“The IRS has little incentive to ensure hardworking Americans do not pay more than they owe in taxes and may instead benefit from families and small businesses paying greater amounts than they are required by law,” the legislators wrote.

Private tax-preparation companies have also lobbied against IRS Direct File in an attempt to derail it. The multi-billion dollar industry is dominated by big players such as TurboTax and H&R Block, which have been accused of hiding the IRS Free File program on their websites and up-charging their users.

• See Related: Checks Coming To Some NJ Taxpayers Under $141M TurboTax Settlement
• See Related: Where's My Refund: Check Your IRS Tax Refund In NJ

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