Each year, more and more North Carolina taxpayers are turning to a faster, more efficient alternative for filing their State and federal income tax returns – electronic filing or E-File. In the thirteen years North Carolina has participated in the Federal/State Electronic Filing Program, the State has consistently ranked at or near the top nationally in the number of electronically filed individual income tax returns. During 2007, the Department processed over 2.2 million individual income tax returns received through the E-File program.

What Is E-File? E-File is an electronic method of filing a tax return by using a computer, a modem and approved software. The Internal Revenue Service and the NC Department of Revenue approve software products that individuals and tax professionals can purchase or use to prepare and transmit Federal and State tax returns electronically. The individual or tax professional receives an e-mail acknowledgement within 24 to 48 hours after the returns have been sent electronically that the tax returns have been received. What Are The Benefits of E-File? Faster refund More accurate return as software performs checks and verifies calculations Direct Deposit for the NC refund is available only through E-File Acknowledgement that return has been received File Federal and State returns at the same time or separately You may file a balance due return and wait until the due date to pay the tax without incurring penalties or interest No paper return to mail Convenient, safe and secure 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 Return, and D-400TC, 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 Locating a Tax Professional in Your Area Approved Software Products for PC E-file 2007 Tax Professional Information:  - Handbook 2008 Software Developer Information:   - Handbook   - Test Package  2008 Approved Software Developer List

There are a few tax forms that are excluded from the North Carolina E-File Program. The following is a partial list of the forms that cannot be electronically filed at this time. 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 if you have a personal computer (PC) and approved software or by contacting a tax professional to e-file your return. 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.

• Taxpayer who would like to file a tax return electronically with a personal computer:
  If you have a PC, a modem, and approved tax software you can file your Federal and State returns electronically through the Federal/State On-line Filing Program. The Internal Revenue Service and NC Department of Revenue annually approve software that can be used for transmitting the Federal and State returns through the On-Line Filing Program. Some software products may allow free tax preparation and electronic filing depending on your income level. The Department maintains a List of Approved Software Products for PC E-file and links to the developers’ sites. The Department does not endorse these software products.
  
  
• Taxpayer who would like to file a return electronically with the assistance of a tax professional:
  If you would like a tax professional to electronically file your Federal and State returns, the Department maintains a list of tax professionals that offer electronic filing. 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 Professional who would like to offer electronic filing to their clients, download the electronic filers’ handbook, or view a list of approved software:
  If you are a tax professional that would like to offer electronic filing to your clients, you will need to review the Department’s Handbook for Electronic Filers of Individual Income Tax Returns for information about the 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 does not endorse these software products.
  
  
• Software Developer who would like to produce software to file a NC return electronically or to download the software developers’ handbook or test package:
  If you are a software vendor interested in producing software to electronically file a North Carolina individual income tax return, you will need to review the Department’s Handbook for Software Developers and Test Package.

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

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. 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.

Is E-Filing A Tax Return Paperless?

It is almost paperless with 2 exceptions:

What Are My Payment Options If I Owe Tax?

You can not submit payment of tax with your electronically filed individual income tax return, but 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/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.

Last modified on: 11/07/08 10:19:51 AM .