IRS expands free tax filing program into North Carolina
Jan 26, 2025
(NEXSTAR) — Tax season is back again, which means it's time to collect your W-2 and Form 1098, and Form 1099s and start filing. While there are a slew of tax services and professionals that can help you file, for a fee, you may qualify to use a new tax filing program from the Internal Revenue Service.
Launched last year, Direct File is meant to give you step-by-step assistance and live support — all for free.
Initially, the IRS made Direct File available only to government employees in 12 states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington State and Wyoming. It was later made available to private-sector taxpayers.
Tax brackets and more are changing in 2024, 2025: What to know
Direct File is now available in 13 more states: Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin.
The program also covers more tax situations this year, the IRS explains. In addition to the Earned Income Tax Credit, the Child Tax Credit, and Credit for Other Dependents, taxpayers using Direct File will also be able to claim the Child and Dependent Care Credit, the Premium Tax Credit, Credit for the Elderly and Disabled, and Retirement Savings Contribution Credits.
Available deductions include those for student loan interest and educator expenses, as well as deductions for health savings accounts and the standard deduction.
Your paycheck may be larger in 2025, even if you don’t get a raise
If you live in one of the eligible states, you can access Direct File online via your phone, laptop, tablet, or desktop computer when it becomes available on January 27. The service also offers a live chat feature, in English and Spanish, with assistance from IRS customer service representatives.
Unfortunately, if you're looking to apply additional credits or deductions or have a more complex filing status, you may not be able to use the Direct File program. You may still qualify for a free tax filing program through the IRS's Free File Program. The agency has partnered with eight tax software companies to provide eligible taxpayers — those with an Adjusted Gross Income of $84,000 or less — free federal tax filing services online.
Child tax credit: Could the amount change during Trump’s presidency?
Free File and Direct File may not cover your state tax, however. Some of the tax software companies involved in Free File may offer free state tax preparation and filing. according to the IRS, while the Direct File program will guide users "to state tools to complete their state tax filings." In some cases, Direct File may be able to transfer already-entered data to the state's tax filing tool.
According to the IRS, most tax refunds are issued in less than 21 days. You'll be able to track your refund on the IRS's "Where's My Refund?" tool within 24 hours of e-filing. If you file a paper return, you can expect your refund information to be available after roughly four weeks of filing.