South Raleigh News

On August 16, 2024, Governor Roy Cooper and North Carolina Department of Revenue (NCDOR) Secretary Ronald Penny announced 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 use the free Direct File tool to submit both their state and federal tax returns directly with the IRS. Approximately 1.25 million North Carolinians will be eligible for this service.

Governor Cooper emphasized the benefits of this new tool: “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.” He also expressed gratitude towards the Biden-Harris Administration for developing this resource through the Inflation Reduction Act.

NC Department of Revenue Secretary Ronald Penny highlighted how Direct File will benefit working families: “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 it would help minimize tax fraud and increase efficiency at the Department of Revenue.

U.S. Secretary of the Treasury Janet L. Yellen also praised the initiative: “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.”

During the 2024 filing season, a successful pilot program enabled 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 each year; however, participants in the pilot saved an estimated $5.6 million in tax preparation fees.

Amanda Renteria, CEO of Code for America, expressed enthusiasm about expanding their services: “Code for America is thrilled to be working with North Carolina to expand FileYourStateTaxes to the Tar Heel State.”

Sharon Hirsch, President & CEO of Positive Childhood Alliance, noted how Direct File could reduce financial stress on families: “Direct File is an opportunity to reduce the overload of financial stress on families... Ensuring caregivers have what they need before problems arise allows children in their care to thrive.”

Rebecca Strimer from OnTrack WNC added that access to free filing systems would significantly aid Volunteer Income Tax Assistance (VITA) programs across the state: “Access to free and simple federal and state filing systems through Direct File will be a big help... Despite our efforts... many taxpayers spend hundreds of dollars each year on tax prep software and services.”

For more information about IRS Direct File options available next year, interested parties can read further details provided by relevant authorities.

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