Today, Governor Josh Stein issued a proclamation recognizing Earned Income Tax Credit Awareness (EITC) Day to encourage eligible hardworking North Carolinians to claim the tax credit they have earned on their upcoming federal taxes.
This year marks the 50th anniversary of the EITC, which has played a crucial role in supporting workers in North Carolina and across the country. The EITC has been linked to reduced child poverty, higher educational achievement, greater lifetime earnings, and better health outcomes, including improved birth outcomes, food security, and child safety.
According to the Internal Revenue Service (IRS), the average taxpayer spends approximately $270 and up to 13 hours filing their taxes every year. This tax season, approximately 1.67 million eligible North Carolinians have the option to use IRS Direct File to file their federal tax returns – for free – directly with the IRS. After filing their federal returns, taxpayers will be directed to the FileYourStateTaxes page where they can also file their state returns for free.
“We need to cut taxes to put more money in the pockets of working people,” said Governor Josh Stein. “That’s exactly what the federal Earned Income Tax Credit has done for the past 50 years. And I encourage North Carolinians to consider Direct File when filing their tax returns this year to save money.”
Direct File opened on January 27, 2025. Taxpayers can use the Eligibility Checker at directfile.irs.gov to find out if Direct File is an option for them.
“The federal EITC delivers for working families in North Carolina – not only in terms of increasing incomes and reducing poverty, but across a wide range of measures of well-being. And since only about 80% of eligible taxpayers claim the EITC, the new Direct File tool is a huge opportunity to make sure North Carolinians access the tax credits they have earned,” said Sally Hodges-Copple, Public Policy Analyst at the NC Budget & Tax Center.
“Direct File will save North Carolina taxpayers time, money, and stress. Having a simple way to file your taxes directly with the government for free means more people can benefit from tax credits like the Earned Income Tax Credit, using these funds to pay off debt and save money,” said Jenna Bryant, Senior Program Director of MDC, which convenes the NC Tax Credit Coalition.
The resources below provide more information on both the EITC and Direct File:
For more information on the EITC, visit Earned Income Tax Credit (EITC).
The IRS also offers an interactive online tool, EITC Assistant at www.irs.gov/eitcassistant, that guides taxpayers through EITC eligibility and estimates their possible credit.
A full list of tax situations covered by Direct File is available at irs.gov/directfile.
North Carolina continues to offer its existing free state filing options. Visit the North Carolina Department of Revenue (NDOR) at eFile for Individuals | NCDOR for more information.