Code for America and North Carolina Department of Revenue to Expand Direct File to North Carolina in 2025

Raleigh, N.C. – Today, the North Carolina Department of Revenue (NCDOR) and Code for America announced that eligible North Carolinians will be able to electronically file their federal and state income taxes for free using IRS Direct File starting in January 2025.

NCDOR and Code for America will make FileYourStateTaxes, Code for America’s integrated state tax filing tool, available to Direct File taxpayers in North Carolina, allowing users to seamlessly and easily file state returns for free. 

“Code for America is thrilled to be working with North Carolina to expand FileYourStateTaxes to the Tarheel State,” said Amanda Renteria, CEO of Code for America. “Direct File is already changing the face of tax filing in America, democratizing access to the tax system, and empowering millions of taxpayers to easily claim the refunds they are due without fees. We are honored to be part of this project and to help bring these benefits to North Carolinians.”

IRS Direct File submits taxpayers’ federal returns, and provides a system for states to build integrated solutions that taxpayers can use to seamlessly file their state returns. During the 2024 filing season, Code for America piloted this integrated state filing process by launching FileYourStateTaxes, in collaboration with the tax departments in Arizona and New York. FileYourStateTaxes was a striking success in year one, with 96 percent of users “satisfied” or “very satisfied” with the experience, and nine out of 10 completing their state returns in under 15 minutes.

FileYourStateTaxes was part of the overall success of IRS Direct File during its pilot year: 90 percent of Direct File pilot users described their experience as “excellent” or “above average,” and 86 percent said that their Direct File experience increased their trust in the IRS. The pilot demonstrated that the IRS is up to the task of streamlining tax filing for all Americans, building a government that works for everyone in the digital age. 

When it scales, Direct File is expected to help low-income families access up to $12 billion in unclaimed federal tax benefits annually — life-changing amounts of social assistance for those families most in need.

“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,” said NC Department of Revenue Secretary Ronald Penny. “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.”

After the IRS announced Direct File would be made permanent on May 30, Code for America announced plans to support Direct File’s expansion by bringing FileYourStateTaxes to additional states in 2025. Code for America has been thrilled to hear strong enthusiasm for Direct File in conversations with state tax departments across the nation this summer. Code for America continues talking to additional interested states about potential 2025 partnerships.

For more information, visit Code for America’s FileYourStateTaxes information page.

About Code for America

Code for America is the leading civic tech nonprofit that works with community leaders and governments to build equitable, accessible digital tools and services. Founded as a non-profit in 2009, Code for America believes that government can work for the people, and by the people, in the digital age. We work with government at all levels across the country to make the delivery of public services equitable with technology. We work with community organizations and governments to build digital tools, change policies, and improve programs. Our goal: a resilient government that effectively and equitably serves everyone.