IRS Direct File: How eligible NC residents can get free tax filing in 2025

By Good Info News Wire Last updated Aug 26, 2024

North Carolina has joined the IRS Direct File Program, making tax filing free for eligible residents. Here’s what taxpayers need to know.

North Carolina Governor Roy Cooper and North Carolina Department of Revenue (NCDOR) Secretary Ronald Penny have announced that the state will participate in the Internal Revenue Service (IRS) Direct File program starting in the 2025 tax filing season. This initiative will allow eligible residents to submit both state and federal tax returns directly to the IRS using the free Direct File tool. Approximately 1.25 million North Carolinians are expected to benefit from this new option.

Here’s what taxpayers in North Carolina need to know.

About the IRS Direct File program in North Carolina

The Direct File program aims to simplify the tax filing process by providing a no-cost method for submitting tax returns. Eligible participants will be able to file their documents without the need for third-party software or paid services. The initiative is part of a broader effort to streamline government services and reduce the burden of tax compliance on residents.

Governor Cooper emphasized the importance of making tax filing more accessible for North Carolinians, stating, “Filing taxes is often stressful, expensive, and time-consuming for North Carolina taxpayers and families. The IRS Direct File tool helps remove unnecessary hurdles and fees by allowing taxpayers to file directly with the IRS for free, keeping more money in their pockets.”

NCDOR Secretary Penny also highlighted the benefits of the Direct File program, saying, “Making Direct File available as a filing option to North Carolinians is a huge win for working families. It provides a free filing option for eligible taxpayers, many who struggle to make ends meet.” He added that the program would help minimize tax fraud and strengthen the security of the state’s tax system.

Financial impact and efficiency

The potential cost savings for North Carolina taxpayers are significant. According to IRS data, the average taxpayer spends approximately $270 and up to 13 hours filing their taxes every year. During the 2024 filing season pilot program, Direct File saved an estimated $5.6 million in tax preparation fees for participating taxpayers across the country.

U.S. Secretary of the Treasury Janet L. Yellen praised the expansion, noting, “Direct File will save North Carolinians time and money and help ensure they receive the tax benefits they are owed.”

Community support

The initiative has garnered support from various community organizations.

Sharon Hirsch, President & CEO of Positive Childhood Alliance, commented on the potential impact on families: “Direct File is an opportunity to reduce the overload of financial stress on families, especially those with lower incomes, by simplifying the process to pay their taxes and receive their tax refunds.”

Rebecca Strimer, VITA Coordinator and Housing Counselor at OnTrack WNC, added, “Access to free and simple federal and state filing systems through Direct File will be a big help to taxpayers and Volunteer Income Tax Assistance (VITA) programs across the state.”

Looking ahead

As North Carolina prepares to implement the Direct File program, officials expect it will encourage more residents to take advantage of electronic filing options. This move is anticipated to lead to faster refunds and fewer errors in tax submissions.

North Carolinians interested in learning more about their eligibility and the program’s rollout are encouraged to stay tuned for updates from the NCDOR and visit the IRS website for additional information on the Direct File program.

By joining this initiative, North Carolina is taking a significant step towards making tax season less burdensome for its residents, potentially putting more money back in the pockets of hardworking Tar Heels.