New IRS Direct File Program to Offer Free Tax Filing for North Carolinians in 2025
Pilot Program Success Leads to Permanent Free Filing Option, Saving Taxpayers Millions
According to The Charlotte Observer, starting in 2025 North Carolina taxpayers will have a new way to file their taxes for free using the IRS Direct File program.
Governor Roy Cooper and North Carolina Department of Revenue Secretary Ronald Penny announced that eligible residents can use this tool to file both their state and federal tax returns directly through the IRS.
With this new option, it will be easier to file your taxes, fees will be cut, and more people will get the credits and refunds they earn. The Direct File program is meant to save people money and make the process easier by letting them deal directly with the IRS.
The Direct File pilot scheme that ran from 2024 to 2025 with 140,000 people taking part did well. It helped these people get over $90 million in tax returns and saved them $5.6 million in fees.
Users were able to finish their tax returns in an average of 30 minutes, showing that the tool was both effective and easy to use. The decision to make the free filing option a fixed choice for federal tax returns was based on the strong desire for it, according to IRS Commissioner Danny Werfel.
1.25 Million North Carolinians Eligible for New Free Tax Filing Tool
The Direct File tool will be available to about 1.25 million people in North Carolina during tax season, but they don’t have to. Secretary Ronald Penny said that this scheme will help stop identity theft and tax fraud, which will make the tax system safer.
It will also help the Department of Revenue work better by cutting down on the amount of paperwork they have to do. If a taxpayer has a question about the new tool, they can get help at irs.gov/help.