Increasingly, North Carolina taxpayers are choosing a faster, more convenient way to file their State and Federal income tax returns called electronic filing or E-Filing. In 2009, two out of every three North Carolina taxpayers E-Filed their individual income tax returns. The Department processed over 2.7 million individual income tax returns received through our safe and secure E-File program.

What Is E-File? You can file your Federal and State income tax returns electronically (e-file) if you have a personal computer (PC) and approved software. Another option is to contact a tax professional to e-file your returns. Instructions follow for taxpayers who wish to file electronically using a personal computer and approved software, and for taxpayers who would like to have a tax professional prepare and/or transmit their return electronically. Instructions also follow for tax professionals who would like to offer electronic filing of the NC return to their clients and for software developers who would like to produce software to electronically file a NC return. This website offers a list of authorized E-File vendors and E-File options for you to choose from. Included in this list are FREE-File and Low-Cost E-File options. What Are The Benefits of E-File? Easy, user friendly, and includes step by step instructions. Convenient – available around the clock 24/7. No paper returns to mail, no stamps, no waiting in lines! File Federal and State returns at the same time or separately Free or low cost filing options – for those that qualify Secure – we use the latest technology to ensure your return is transmitted safely and that your privacy is protected! Proof of Receipt – we confirm that your return was received eliminating the concern about lost mail. Direct Deposit of your NC refund directly into your bank account (available only through E-File). If you owe tax, you can still E-File a “balance due” return and wait until the due date to pay the tax without incurring penalties or interest Eliminates guesswork – tools are available in e-file software that assists you in claiming deductions and credits, including the Earned Income Tax Credit, Child and Dependant Care Expenses Credit, Business Incentive and Energy Tax Credit, etc. Choice – many E-File products are available for you to choose from. Who Can E-File? Taxpayers who request a refund, have a zero balance due, or owe tax may file NC Forms D-400, Individual Income Tax Returns, D-400TC and Individual Tax Credits, electronically. Taxpayers may be full-year residents, part-year residents, or nonresidents of North Carolina.

Checking Status of Your Refund Direct Deposit Free or Low Cost Electronic Filing Options Locating a Tax Professional in Your Area 2009 Tax Professional Information:  - Handbook 2009 Software Developer Information:   - Guide   - Test Package   - Response Form   2009 Approved Software Developer List

Is There a Fee to E-File?

• If you E-File your return using a personal computer and approved software, the software that you choose will explain the fees, if any. There are free and low cost filing options available for those that qualify. Select Free E-File or Low Cost E-File for more information. The Department does not charge a fee to E-file.
• If a tax professional E-Files your return, the tax professional can explain any fees associated with tax preparation and e-filing. The Department does not charge a fee to E-File.

What Are My Refund Options?

Taxpayers may elect the following options for receipt or designation of their overpayment:

• Direct deposit into a bank account
  (The Direct Deposit option is only available to taxpayers who electronically file their returns. Refer to the Direct Deposit link for more information.)
• Receipt of a check
• Credit the overpayment as an estimated income tax payment for the next tax year
• Contribution to the NC Nongame and Endangered Wildlife Fund

What Are My Payment Options If I Owe Tax?

You cannot submit payment of tax with your electronically filed individual income tax return. However, you have two payment options:

• Online: You can pay your tax online using the Department’s D-400V Individual Income Payment application. Payments can be made by bank draft and credit or debit card using MasterCard or Visa. Paying by bank draft is free. There is a convenience fee if you choose to pay by credit or debit card. The fee is calculated as $2.00 for every $100.00 increment of your tax payment and is nonrefundable.
• Mail: You can mail your payment to the Department along with a personalized Form D-400V Individual Income Payment Voucher. Create and print the voucher and mail it, along with your payment to the North Carolina Department of Revenue, PO Box 25000, Raleigh NC 27640-0640.

Are There Tax Forms That are Excluded From the NC E-File Program?

Yes, there are a few tax forms that are excluded from the NC E-File Program. A complete list of exclusions is contained in the North Carolina Handbook for Electronic Filers. If you are using a personal computer and approved software to E-File, refer to your software's instructions or ask your tax professional to determine if you are eligible to E-File a particular tax form.

How Do I E-File?

You can E-File your Federal and State tax returns by using a personal computer and approved software or by contacting a tax professional who will E-File your return.

• Taxpayers who would like to file a tax return electronically with a personal computer:
  If you would like to file your Federal and State returns electronically, the Department maintains a list of approved tax preparation software and online software. Select Approved Software Developer List. You may be eligible for Free or Low cost electronic filing options.
• Taxpayers who would like to file a tax return electronically using a tax professional:
  If you would like a tax professional to electronically file your Federal and State returns, select Locating a Tax Professional in Your Area. You will be asked to provide your zip code to receive a list of tax professionals in your area.
  
• Tax Professionals who would like to offer electronic filing to their clients, download the electronic filers’ handbook, or view a list of approved software:
  We encourage all tax professionals to offer electronic filing to their clients, Please review the Department’s Handbook for Electronic Filers of Individual Income Tax Returns for information about our electronic filing program. Tax professionals may access the Approved Software Developer List for a list of approved software for filing North Carolina individual income tax returns through the Federal/State E-File Program. The Department cannot endorse or advise one software product over another.
  
  

Is E-Filing A Tax Return Paperless?

Yes, with 2 exceptions:

Last modified on: 02/02/10 10:29:25 AM .