The Treasury Department and the Internal Revenue Service announced that North Carolina will be the latest state to join the IRS Direct File free tax program in filing season 2025.
The free online filing system was pilot tested last tax season in 12 states, and the IRS
The 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, following Oregon, New Jersey, Pennsylvania, New Mexico and Connecticut. At least 1.25 million North Carolinians will be eligible to use the free online filing tool next filing season.
"Direct File will save North Carolinians time and money and help ensure they receive the tax benefits they are owed," said Treasury Secretary Janet Yellen in a statement Friday. "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."
"Filing taxes is often stressful, expensive, and time-consuming for North Carolina taxpayers and families," said North Carolina Governor Roy Cooper in a statement. "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. 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."
However, Cooper, a Democrat, is term limited and won't be leading the state next tax season. If he is succeeded next year by a Republican, the program could be curtailed.
