Department of Consumer and Worker Protection Urges New Yorkers to Get Ready for the Upcoming Tax Season!

December 18, 2025

NEW YORK, NY –New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today reminded all New Yorkers that it’s time to get ready for the tax season, including some new changes for this year and, also to file for free if you’re eligible and a reminder to avoid using predatory paid tax preparers.

“The tax season can be stressful, but getting your information ready early—including making sure you have a bank account for direct deposit and that you know if your student loans are in default or delinquency—is key,” said DCWP Commissioner Vilda Vera Mayuga. “And when it comes time to file, remember to file for free if you’re eligible and to know your rights if using a paid preparer.”

What You Need to Know Before Tax Season:

The Internal Revenue Service (IRS) has not yet announced when the tax season will start and consumers should wait until they receive their final tax statements from their employer, such as a W-2 or 1099, to prepare their return. DCWP advises not to use a paystub or past year’s information to file, so that consumers are using the same data the IRS and the New York State Department of Taxation and Finance have on file. DCWP has a checklist of documents to compile to get ready to file.

New Yorkers who do not have a bank account—an estimated 238,900 households—should consider opening one because the IRS will be phasing out paper checks for refunds, starting this year. The most secure and the fastest way to receive your refund is by direct deposit. All New Yorkers can open a NYC SafeStart Account—the City’s FREE bank account with an ATM card, no overdraft fees, and no monthly fees if you have a minimum balance of only $25 or in some cases even less. Visit nyc.gov/SafeStart or call 311 and ask about the NYC SafeStart Account. Some banks and credit unions also accept IDNYC as the primary form of identification. You can also visit a NYC Financial Empowerment Center for a free, one-on-one counseling session with a professional financial counselor who can help find the right account. Visit nyc.gov/TalkMoney or call 311 to make an appointment.

Also, federal student loan borrowers who are in default (270 days or more of nonpayment), may have their tax refunds seized by the Treasury this tax season. Visit nyc.gov/StudentLoans for more information, including steps to check the status of the account and repayment options before filing taxes.

Another important change to note this year: the IRS Direct File pilot has ended as of October 2025. If you made over $68,000 without dependents and/or qualifying children or $97,000 with dependents and/or qualifying children in 2025, you may be eligible for other IRS Free File Options.

When New Yorkers do file, paid tax preparers must give every filer a copy of the Consumer Bill of Rights Regarding Tax Preparers, which is available in multiple languages, before beginning any discussions about tax preparation services. New Yorkers should be on alert for preparers that overcharge, add on hidden fees, or file a return without permission.

Predatory tax preparer tactics include offering refund advances in the form of an anticipation check or a gift card, enticing filers who look forward to receiving their refunds sooner. Refund Anticipation Loans (RALs), or “express refund advances,” are sometimes advertised as “interest free” and typically offer a portion of a filer’s expected refund. Even when RALs do not include fees or interest, some preparers may charge borrowers higher fees.

Refund Anticipation Checks (RACs), or “refund transfers,” require consumers to agree to have their tax preparation fees deducted directly from their refund for an additional fee. Depending on the product, paid preparers may help the filer open a temporary bank account, with potential transfer fees and other product costs.

Last tax season, DCWP issued 92 violations to paid tax preparers for violating the city’s laws around disclosure of consumer rights and failing to provide information about fees charged, among others. DCWP also recently settled with Rocket Tax, a paid tax preparer with locations across Brooklyn, for failing to disclose their fees. Consumers who used Rocket Tax between December 1, 2023 and May 1, 2025 may be eligible for restitution and should file a claim by October 29, 2026. Consumers can file a complaint about tax preparers with DCWP by calling 311 or visiting nyc.gov/dcwp.

DCWP reminds New Yorkers who earned $97,000 or less with qualifying children and/or dependents, or $68,000 without qualifying children and/or dependents in 2025, to file for FREE with NYC Free Tax Prep. NYC Free Tax Prep helps people keep their full refund at no cost—including valuable tax credits like the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), the enhanced NYS Empire State Child Credit, and the NYC Child Care Tax Credit (NYC CCTC). NYC Free Tax Prep offers a variety of free tax prep options, including in-person, virtual, and drop-off options. For more information, contact 311 or visit nyc.gov/TaxPrep.

The NYC Department of Consumer and Worker Protection (DCWP) protects and enhances the daily economic lives of New Yorkers to create thriving communities. DCWP licenses nearly 45,000 businesses in more than 40 industries and enforces key consumer protection and workplace laws that apply to countless more. By supporting businesses through equitable enforcement and access to resources, DCWP protects the marketplace from predatory practices and strives to create a culture of compliance. DCWP empowers consumers and working families by providing the tools and resources they need to achieve financial health and work-life balance. DCWP also conducts research and advocates for public policy that furthers its work to support New York City’s communities. For more information about DCWP and its work, call 311 or visit DCWP at nyc.gov/dcwp, sign up for its newsletter, or follow on its social media sites, X, Facebook, Instagram, and YouTube.

Media Contact:
Sophie Ota / Stephany Vasquez Sanchez
Department of Consumer and Worker Protection
(212) 436-0042
press@dcwp.nyc.gov