NC taxpayers can file their taxes for free with a new tool in 2025. Here’s what to know

Next year, eligible North Carolinians will be able to have their taxes handled directly through the IRS for free.

Gov. Roy Cooper and North Carolina Department of Revenue Secretary Ronald Penny announced eligible residents can use the IRS Direct File program this upcoming tax filing season for both state and federal tax returns.

“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,” Cooper said in their press release.

Can you get a tax refund through IRS’ Direct File?

The U.S. Department of Treasury and IRS ran a Direct File pilot program for 140,000 taxpayers during the 2024 season— which reportedly saved $5.6 million in tax preparation fees for those who participated, and the filers claimed more than $90 million in refunds.

“The clear message is that many taxpayers across the nation want the IRS to provide more than one no-cost option for filing electronically,” IRS Commissioner Danny Werfel said after the agency announced that Direct File would be a permanent option for filing federal tax returns.

The Direct File program during the pilot period generally took participants less than an hour to file taxes . Many reported filing in about 30 minutes, the IRS press release says.

Is the IRS’ Direct File tool required for the next tax season?

No , using the Direct File tool for federal tax returns is not required, the IRS says.

For the upcoming tax season, about 1.25 million taxpayers in North Carolina will be eligible to use the tool. (The state has about 10.8 million residents .)

“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,” Penny said in the press release.

For questions, you can contact the IRS at irs.gov/help .

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