Following a lively start to the tie, Everton broke the deadlock in the 23rd minute. Jamie Carragher's attempted clearance struck Tim Cahill on the edge of the area and Nikica Jelavic reacted quickest to slot the Toffees into the lead.
Liverpool responded by controlling large parts of the possession, but they were unable to find a way past Everton goalkeeper Tim Howard.
Kenny Dalglish's Liverpool came out for the second half with a greater attacking threat and should have been level in the 46th minute. Stewart Downing crossed from the left for Carroll, but the £35m signing headed his effort past the post from six yards out.
However, Liverpool finally made their pressure count in the 62nd minute. Sylvain Distin's pass back to goalkeeper Howard was lacking in weight and Luis Suarez took full advantage by curling an effort past the American shot stopper with the outside of his right foot.
Carroll had another chance to find the net in the 77th minute, but he dragged an effort from the edge of the box wide of the target.
The Gateshead-born striker eventually struck four minutes from time when he rose highest to convert a cross from substitute Craig Bellamy.
Maxi Rodriguez went close to making it 3-1 late in the tie, but his miss didn't alter the outcome as Liverpool reached their second domestic cup final of the season.