Special to IFN

RALEIGH — Gov. Roy Cooper and N.C. Department of Revenue (NCDOR) Secretary Ronald Penny announced this week that North Carolina will join the Internal Revenue Service (IRS) Direct File program for the upcoming tax filing season.

Beginning in 2025, eligible North Carolina residents will be able to utilize the free Direct File tool to submit both their both state and federal tax returns directly with the IRS. Approximately 1.25 million North Carolinians will be eligible to use Direct File for the upcoming tax season. The Biden-Harris Administration paved the way for this critical resource through the Inflation Reduction Act to provide a user-friendly, free filing option to taxpayers.

“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,” Cooper said. “This resource will help ensure qualifying families receive tax credits. We are grateful to the Biden-Harris Administration for their diligent work in developing this tool and making it available at no cost to North Carolinians. We look forward to rolling it out as an option this coming tax season.”

“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,” Penny added. “Direct File will help minimize tax fraud, strengthening the security of our tax system and protecting our residents against identity theft so that we continue to invest in our state and its people. It will also reduce the number of paper filings state employees are required to process, which will increase overall efficiency at the Department of Revenue.”

During the 2024 filing season, the U.S. Department of Treasury and IRS ran a successful Direct File pilot program enabling 140,000 taxpayers to claim over $90 million in tax refunds. The average taxpayer spends approximately $270 and up to 13 hours filing their taxes every year. According to the IRS Filing Season 2024 After Action report, the Direct File pilot saved an estimated $5.6 million in tax preparation fees for participating taxpayers.

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