North Carolina will be the latest state to join IRS Direct File for Filing Season 2025, the Internal Revenue Service (IRS) and U.S Treasury announced.
After a successful Pilot Program in 12 states that saw 140,000 taxpayers claim more than $90 million in refunds using the new free online filing tool, Treasury and the IRS decided to expand Direct File as a permanent offering.
Treasury and the IRS have been working with interested states to offer Direct File to their taxpayers with North Carolina being the latest state to join. North Carolina joins Oregon, New Jersey, Pennsylvania, New Mexico, and Connecticut.
“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,” North Carolina Gov. Roy Cooper said. “This resource will help ensure qualifying families receive tax credits. We are grateful to the United States Department of Treasury and Internal Revenue Service for developing this tool and making it available as a no-cost option for North Carolinians for filing season 2025.”
At least 1.25 million North Carolina residents will be eligible to use the free online filing tool next filing season.
“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,” U.S. Secretary of the Treasury Janet Yellen said. “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.”
The Treasury Department’s goal in the coming years is to make Direct File an option for working-and middle-class taxpayers nationwide.
In the 2024 filing season, Direct File was available to taxpayers with simple tax situations in 12 states. The pilot exceeded expectations with more than 140,000 Americans filing taxes in the five weeks the program was available following extensive product testing. These filers claimed more than $90 million in refunds and saved an estimated $5.6 million in tax preparation fees on their federal returns alone.
Direct File users also reported a high degree of satisfaction, as 90 percent of Direct File users ranked their experience as “Excellent” or “Above Average.” Among survey respondents, 47 percent of users paid to file their taxes last year and 16 percent did not file last year at all.