August 16, 2024. Today, Governor Roy Cooper and North Carolina Department of Revenue (NCDOR) Secretary Ronald Penny announced 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,” said Governor Cooper. “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,” said NC Department of Revenue Secretary Ronald Penny. “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.”
“Thanks to President Biden’s Inflation Reduction Act, more than 1.25 million North Carolina taxpayers will be able to file their taxes online for free, directly with the IRS this coming Filing Season. Direct File will save North Carolinians time and money and help ensure they receive the tax benefits they are owed,” said U.S. Secretary of the Treasury Janet L. Yellen. “After a successful pilot this Filing Season, we are pleased to expand the program as a permanent offering and welcome North Carolina as the latest new state to offer this free option to taxpayers.”
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.
“Code for America is thrilled to be working with North Carolina to expand FileYourStateTaxes to the Tar Heel State,” said Amanda Renteria, CEO of Code for America. “Direct File is already changing the face of tax filing in America, democratizing access to the tax system, and empowering millions of taxpayers to easily claim the refunds they are due without fees. We are honored to be part of this project and to help bring these benefits to North Carolinians.”
“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. When parents have more money, it reduces stress and creates opportunities for economic mobility. Ensuring caregivers have what they need before problems arise allows the children in their care to thrive,” said Sharon Hirsch, President & CEO of Positive Childhood Alliance. “We are grateful for the Governor’s support of Direct File to increase financial security and economic mobility for NC families.”
“OnTrack WNC tax preparation volunteers have years of experience serving low to moderate income taxpayers and we see firsthand how cumbersome, confusing, and expensive the tax filing systems have become,” said Rebecca Strimer, VITA Coordinator and Housing Counselor at OnTrack WNC. “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. Despite our efforts to serve as many people as possible, many taxpayers spend hundreds of dollars each year on tax prep software and services. Direct File will expand our capacity to serve more North Carolinians through our VITA program.”
Read more about IRS Direct File here.
Author: Jordan Monaghan. Originally Published on governor.nc.gov.
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To learn more about VITA and other tax preparation assistances, visit https://nc211.org/tax-preparation-assistance/.
You can also call NC 211 at 2-1-1 or (888) 892-1162 or visit nc211.org to learn more on how to receive assistance with filing your taxes.
