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North Carolina Free Printable  for 2020 North Carolina Individual Income Tax Instructions for Form D-400

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Individual Income Tax Instructions for Form D-400
Form D-401

Form D-401 North Carolina Individual Income Tax Instructions THIS BOOKLET CONTAINS INSTRUCTIONS FOR FORMS D-400, D-400 SCHEDULE S, D-400 SCHEDULE PN, D-400TC, AND D-400 SCHEDULE AM FOR TAX YEAR 2019 eFile 3 Make it easy on yourself - file electronically 3 Convenient, faster, more accurate 3 Pay by bank draft (no convenience fee) 3 Direct deposit for state tax refunds You may qualify to file for free! Visit the Department’s website to get started. Declaración Electrónica (EN ESPAÑOL) www.ncdor.gov IMPORTANT TELEPHONE NUMBERS 2019 Automated Refund Inquiry Line................................................................................................................................... 1-877-252-4052 Taxpayer Assistance and Forms................................................................................................................................. 1-877-252-3052 Tax Fraud Hotline (8:00 a.m to 5:00 p.m., Monday through Friday) Toll Free.................................................................................................................................................................. 1-800-232-4939 Wake County........................................................................................................................................................... 1-919-707-7597 N.C. DEPARTMENT OF REVENUE, P.O. BOX 25000, RALEIGH, NC 27640-0100 Page 2 In This Booklet What’s New...............................................3 General Information.................................5 Instructions for: Form D-400.......................................... 11 Form D-400 Schedule S......................16 Form D-400 Schedule PN...................19 Form D-400TC.....................................19 Form D-400 Schedule AM...................21 Consumer Use Tax.................................24 What you should send us... • Your North Carolina income tax return (Form D-400). • Federal forms W-2 and 1099 showing the amount of North Carolina tax withheld as reported on Form D-400, Line 20. • Federal Form 1099-R if you claimed a Bailey retirement deduction on Form D-400 Schedule S, Line 10. • Form D-400 Schedule S if you added items to federal adjusted gross income on Form D-400, Line 7, or you deducted items from federal adjusted gross income on Form D-400, Line 9. • Form D-400 Schedule S if you deducted N.C. itemized deductions on Form D-400, Line 11. • Form D-400 Schedule PN if you entered a taxable percentage on Form D-400, Line 13. • Form D-400TC and, if applicable, Form NC-478 and Form NC-Rehab if you claimed a tax credit on Form D-400, Line 16. • A copy of the tax return you filed in another state or country if you claimed a tax credit for tax paid to another state or country on Form D-400TC, Line 7a. • A copy of your federal tax return unless your federal return reflects a North Carolina address or you filed electronically. • Other required North Carolina forms or supporting schedules. (Do not send copies of completed worksheets from the instruction booklet or other unnecessary attachments.) • A check or money order payable to the “North Carolina Department of Revenue,” if you have a tax due on Form D-400, Line 27. Include a payment voucher, Form D-400V or D-400V Amended, available from the Department’s website. Important: The Department will not accept a check, money order, or cashier’s check unless it is drawn on a U.S. (domestic) bank and the funds are payable in U.S. dollars. Want a convenient, reliable, proven method for filing and paying your taxes? Try eFile! Over 90% of North Carolinians take advantage of the benefits of eFiling! With eFile, you can file your state and federal income tax returns at the same time, and, if you owe tax, pay by bank draft with no convenience fee. • Visit www.ncdor.gov to access eFile for Free - over 70% of North Carolinians qualify (IRS estimate). Certain eligibility requirements apply. • If you don’t qualify to eFile for Free, visit www.ncdor.gov to access NCDOR-approved software provider lists or choose a tax professional to eFile for you. • Get free tax help through Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) - visit www.irs. gov or call 1-800-829-1040. Certain eligibility requirements apply. • Software prices, software features, and tax professional fees vary. Choose the one that meets your needs. • eFile Advantages - File current, amended, and prior year returns. - Make or schedule payments – up to the due date of the tax, estimates up to 12 months out, extensions up to 6 months out. - Get confirmation by email when your forms and payments are received. - Choose direct deposit for your state individual income tax refund. Make your tax payments electronically - it’s easy. Visit www.ncdor.gov and select a File and Pay option. Pay by bank draft (no convenience fee), or MasterCard or Visa (convenience fee). Follow Us Future Developments For the latest information about developments affecting Form D-400 or the instructions, such as legislation enacted after the publication of the tax forms, visit the Department’s website. Page 3 What’s New for 2019? • North Carolina Individual Income Tax Extension Effective January 1, 2019, state law permits an automatic extension to file your North Carolina income tax return if you certify that you were granted an automatic extension to file your federal income tax return. (For more information on how to get an extension, see Page 7.) • Veterans Benefits and Transition Act The Veterans Benefits and Transition Act of 2018 (PL 115-407 signed into law December 31, 2018) amended the Servicemembers Civil Relief Act to allow the spouse of a servicemember to elect to use the same state of residence as the servicemember for state tax purposes. Beginning with taxable year 2018, this election can be made regardless of when or where the taxpayers were married. (For more information on who must file a North Carolina individual income tax return, see Page 5.) • Form D-400 Affirmation The affirmation statement for the D-400 and accompanying schedules and statements has been clarified to state that upon signing the return, the taxpayer is declaring and certifying that the taxpayer has examined the return and all accompanying schedules and statements, and that they are true, correct, and complete. • N.C. Standard Deduction Amount Increased The N.C. standard deduction for each filing status is increased for tax year 2019. To determine the N.C. standard deduction amount for your filing status, see Page 13. • Charitable Contribution Beginning with tax year 2019, N.C. law was changed to conform to federal law that allows a federal income tax exclusion to taxpayers over the age of 70 1/2 that make qualified charitable distributions from an individual retirement plan. This change eliminates the corresponding N.C. adjustments to taxable income that were previously required. • Change in Tax Rate The income tax rate imposed on an individual’s North Carolina taxable income for tax years beginning on or after January 1, 2019 is reduced from 5.499% to 5.25%. • Form D-400 Schedule AM No Longer Year Specific Schedule AM is no longer year specific and may be used to amend any tax period eligible to be amended under N.C. law. Taxpayers will now be required to enter the calendar year or other tax year being amended in the appropriate fields at the top of Schedule AM. (For more information on Form D-400 Schedule AM, see Page 21.) • Other 2019 Legislative Changes For information on other legislative changes that affect tax year 2019, see the “2019 Tax Law Changes” publication available on the Department’s website. The Office of the Taxpayer Advocate is Here to Help You What is the Office of the Taxpayer Advocate? The Office of the Taxpayer Advocate (“OTA”) was established by the Secretary of Revenue to help ensure the Department enforces the State’s tax laws in an impartial, consistent, secure, and efficient manner. The purpose of OTA is to instill confidence and integrity in the administration of North Carolina’s tax laws by ensuring taxpayers are afforded their rights as established in the Taxpayer’s Bill of Rights. When a problem arises between a taxpayer and the Department that cannot be resolved through normal administrative channels, OTA will work with the appropriate division within the Department to seek resolution of the problem and ensure that it is handled in a professional manner. What can the Office of the Taxpayer Advocate do for you? OTA can help you resolve certain tax issues with the Department. To receive OTA assistance, one or more of the following criteria must be met: • • • • You must have attempted to resolve a state tax issue(s) through the normal administrative channels. In other words, you must have exhausted ALL administrative remedies provided by law before contacting OTA. A Departmental response has not been provided to you by the date promised or within the date required by law. You believe that instructions or information provided to you by the Department is incorrect and that the erroneous information caused confusion or led to an unnecessary hardship. You have a reoccurring issue that has not been resolved through normal administrative channels. The Office of the Taxpayer Advocate cannot help with: • • • • • Issues involving a current state audit Provide the status of a refund request Stop collection activity Waives taxes, penalties, or interest Accept an offer in compromise Taxpayers may, however, receive assistance with the above matters by calling our toll-free customer service number at 1-877-252-3052. How can you reach us? An eligible taxpayer may request OTA assistance by completing Form NC-TA, which is available on the Department’s website. You can also contact the office at 1-919-715-2080. Page 4 Before You Begin Read the instructions carefully before you begin preparing your individual income tax return. Make sure that you complete and attach the proper tax schedules to your tax return. Incomplete or inaccurate information may result in the Department returning your tax return to you, thereby delaying the processing of your tax return and any refund due thereon. Important: You must enter your entire nine digit social security number(s) (“SSN”) in the appropriate boxes on the forms. An incorrect or missing SSN can increase your tax, reduce your refund, or delay your refund. Be sure to enter your complete address on your return, including your apartment number, if applicable. Make sure you have received all of your W-2s, 1099s, and other tax documents that you need to prepare your return. Do not submit photocopies of the return. Submit original forms only. Do not use any prior year forms. Use black or blue ink only. Do not use red ink or pencil. Write your numbers clearly inside the boxes like this: Do not use dollar signs ($), commas, decimal points, or other punctuation marks like this: Do not use brackets to indicate negative numbers. Negative numbers are indicated by filling in the circle next to the number. Example: If you are completing a web-fill form on the Department’s website, enter a minus sign to indicate a negative number. Example: If you do not have an entry for a particular line, leave it blank. Do not enter dashes, zeros, draw lines, or other symbols in boxes that you have no entry for that line. Round off to the nearest whole dollar. Drop amounts under 50 cents and increase amounts from 50 cents to 99 cents to the next whole dollar. Use capital letters. Print letters and numbers like this: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0 1 2 3 4 5 6 7 8 9 Example: Yes No Fill in applicable circles completely. Each year the Department makes available several different versions of tax forms and schedules. Do not mix the different versions. If you submit different versions for the same tax year, the Department cannot process your tax return. Example: Do not submit a software generated Form D-400 with a web-fill Form D-400TC. Instead, submit a software generated Form D-400 and a software generated Form D-400TC, or a web-fill Form D-400 and a web-fill Form D-400TC. Maintaining Records You should keep canceled checks, receipts, and other documentation, including a copy of your federal return, to verify any amount entered on your tax return until the statute of limitations runs out for the return. Usually, this is three years from the due date of the return or three years from the date the return is filed, whichever is later. Lack of adequate records may result in the disallowance of all or part of the deductions. Your canceled check, money order stub, or Departmental receipt showing payment of tax should be kept for at least five years from the due date of the tax return. Important Notice Regarding Substitute Returns Any facsimile or substitute form must be approved by the Department of Revenue prior to its use. If you use computer generated returns, the software company is responsible for requesting approval and receiving an assigned identification number. The Department publishes a list on our website of software developers who have received approval. Photocopies of the return are not acceptable. Returns that cannot be processed by our imaging and scanning equipment will be returned to the taxpayer with instructions to refile on an acceptable form. Page 5 General Information The information contained in this booklet is to be used as a guide in the preparation of the 2019 North Carolina individual income tax return and is not intended to cover all provisions of the law. For further information on North Carolina tax law, refer to the administrative rules, bulletins, directives, or other publications issued by the Department of Revenue. The references to line numbers on federal income tax returns were correct at the time this booklet was published. If line numbers have changed since publication and you are unable to determine the proper line to use when completing your North Carolina tax return, contact the Department of Revenue at 1-877-252-3052. Who Must File a North Carolina Individual Income Tax Return? The minimum gross income filing requirements under North Carolina law are different from the filing requirements under the Internal Revenue Code because North Carolina law does not allow the same standard deduction amount as the Internal Revenue Code. Even if your federal gross income was less than the amount shown on the Filing Requirements Chart on Page 6 for your filing status, you must file a N.C. tax return to receive a refund if you had N.C. income tax withheld during the year. If you were not required to file a federal income tax return, but your total gross income from all sources both inside and outside of N.C. exceeds the amount for your filing status shown in the Filing Requirements Chart on Page 6, you must complete a federal return and attach it to your N.C. income tax return to show how your federal adjusted gross income and deductions were determined. You and your spouse must file a joint N.C. tax return if you file a joint federal income tax return and both you and your spouse were residents of N.C. or both of you had N.C. taxable income. If you file a joint federal return and your spouse is a nonresident of N.C. and had no N.C. taxable income, you may file a joint N.C. tax return or file a N.C. tax return as married filing separately. Once you file a joint N.C. tax return, you cannot choose to file a separate N.C. tax return for that year after the due date of the return. If you choose to file the N.C. tax return as married filing separately, you must complete either a federal tax return as married filing separately reporting only your income and deductions or a schedule showing the computation of your separate income and deductions and attach it to your N.C. tax return. Note: Itemized deductions of a married couple may be claimed by a spouse only if that spouse was obligated to pay the items and actually paid the amount during the year. In the case of a joint obligation (such as mortgage interest and real estate taxes), the deduction is allowable to the spouse who actually paid the item. North Carolina Residents. If you were a resident of North Carolina during tax year 2019, you must file a North Carolina individual income tax return if your gross income for 2019 exceeds the amount shown in the Filing Requirements Chart on Page 6 for your filing status. You were a resident of North Carolina if you were domiciled in this state at any time during 2019 or if you resided in this state during 2019 for other than a temporary or transitory purpose. In the absence of convincing proof to the contrary, an individual who is present within North Carolina for more than 183 days during the taxable year is presumed to be a resident, but the absence of an individual from the state for more than 183 days raises no presumption that the individual is not a resident. A resident who moves from the state during 2019 is considered a resident of North Carolina until the individual has both established a definite domicile elsewhere and abandoned any domicile in North Carolina. A taxpayer may have several places of abode in a year, but at no time can an individual have more than one domicile. A mere intent or desire to make a change in domicile is not enough; voluntary and positive action must be taken. Part-year Resident. If you were a part-year resident of North Carolina during tax year 2019 and you received income while a resident of North Carolina, or you received income in 2019 while a nonresident that was (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina, (2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in North Carolina, and your total gross income for 2019 exceeds the amount shown in the Filing Requirements Chart on Page 6 for your filing status, you must file a 2019 North Carolina individual income tax return. You were a part-year resident of North Carolina if you moved to North Carolina and became a resident of North Carolina during 2019, or you moved out of North Carolina and became a resident of another state during 2019. Nonresidents. If you were not a resident of North Carolina at any time during tax year 2019 but you received income in 2019 from North Carolina sources that was (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina, (2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in North Carolina, and your total gross income from all sources both inside and outside of North Carolina exceeds the amount in the Filing Requirements Chart on Page 6 for your filing status, you must file a 2019 North Carolina individual income tax return. Nonresident Alien. A nonresident alien is an alien (not a U.S. Citizen) who has not passed the green card test or the substantial presence test (For more information on the green card test and the substantial presence test, see federal publication 519, U.S. Tax Guide for Aliens.) For North Carolina tax purposes, a nonresident alien may be considered a resident, part-year resident, or nonresident. (For more information, on filing requirements for each residency status, see above.) Military Personnel. If you were serving in the United States Armed Forces during tax year 2019 and your legal residence was North Carolina, you must file a 2019 North Carolina individual income tax return and North Carolina income tax should be withheld from your pay regardless of where you may be stationed. If you were a legal resident of another state stationed in North Carolina on military orders, you are not liable for North Carolina income tax on your military pay. However, income that is (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina, (2) derived from other employment, a business, or trade carried on in North Carolina, or (3) derived from gambling activities in North Carolina is subject to North Carolina income tax. Page 6 Military Spouses. The Servicemembers Civil Relief Act prohibits North Carolina from taxing the income earned for services performed in North Carolina by a spouse of a servicemember stationed in North Carolina if: (1) the servicemember is present in North Carolina solely in compliance with military orders; (2) the spouse is in North Carolina solely to be with the servicemember; and (3) the spouse is domiciled in the same state as the servicemember. The Veterans Benefits and Transition Act of 2018 amended the Servicemembers Civil Relief Act to allow the spouse of a servicemember to elect to use the same state of residence as the servicemember for state tax purposes. Beginning with taxable year 2018, this election can be made regardless of when or where the taxpayers were married. The income earned for services performed in North Carolina by a spouse of a servicemember who made the residency election under the Veterans Benefits and Transition Act of 2018 is not subject to North Carolina income tax if: (1) the servicemember is present in North Carolina serving in compliance with military orders, (2) the servicemember’s spouse is in North Carolina solely to be with the servicemember, and (3) the active duty servicemember maintains legal residence in a state other than North Carolina and the servicemember’s spouse elects that same state as her legal state of residence. If all three of the above conditions are met, an employer is not required to withhold North Carolina tax from wages paid to the military spouse. A spouse who does not meet all of the requirements should see the instructions for Form D-400 Schedule PN, on Page 19. Note: Withholding from wages paid to military spouses is required if all three of the above conditions are not met. Filing Requirements Chart Filing Status A Return is Required if Federal Gross Income Exceeds Single...................................................................................................................................$ 10,000 Married - Filing Jointly.........................................................................................................$ 20,000 Married - Filing Separately If spouse does not claim itemized deductions................................................................$ 10,000 If spouse claims itemized deductions............................................................................. 0 Head of Household..............................................................................................................$ 15,000 Qualifying Widow(er)/Surviving Spouse..............................................................................$ 20,000 Nonresident alien (regardless of filing status).....................................................................$ 0 What Form Should I File? All individuals (including part-year residents and nonresidents) required to file a North Carolina individual income tax return must file Form D-400. In addition to Form D-400, you may be required to complete and attach the following additional tax forms: Form D-400 Schedule S, 2019 Supplemental Schedule. Complete this form to report additions to (or deductions from) federal adjusted gross income or to claim North Carolina itemized deductions. (For more information, see Page 16.) Form D-400 Schedule PN, 2019 Part-Year Resident and Nonresident Schedule. If you are a part-year resident or nonresident who received income from North Carolina sources during tax year 2019, complete this form to determine the percentage of total gross income from all sources that is subject to North Carolina tax. (For more information, see Page 19.) Form D-400TC, 2019 Individual Income Tax Credits; Form NC-478, 2019 Summary of Tax Credits Limited to 50% of Tax; NC-Rehab, 2019 Historic Rehabilitation Tax Credits. Complete these forms to claim various North Carolina tax credits. (For more information, see Page 19.) Form D-400 Schedule AM, Amended Schedule. Complete this form if you need to amend your North Carolina individual income tax return. Enter the calendar year or other tax period (beginning and end dates) to be amended at the top of Form D-400 Schedule AM. You must also fill in the circle on the top right hand corner of Form D-400. (For more information, see Page 21.) Page 7 Important: Any facsimile or substitute form must be approved by the Department of Revenue prior to its use. If you use computer generated returns, the software company is responsible for requesting approval and receiving an assigned identification number. The Department publishes on our website a list of software developers who have received approval. Photocopies of the return are not acceptable. Returns that cannot be processed by the Department’s imaging and scanning equipment will be returned to the taxpayer with instructions to refile on an acceptable form. When Must I File? If you file your return on a calendar year basis, the 2019 return is due on or before April 15th, 2020. A fiscal year return is due on the 15th day of the 4th month following the end of the taxable year. When the due date falls on a Saturday, Sunday, or legal holiday, the return is due on or before the next business day. A fiscal year return must be filed on a tax form for the year in which the fiscal year begins. For example, a 2019 tax form must be used for a fiscal year beginning in 2019. (For more information on timely mailing of N.C. tax returns, see Directive TA-18-1 available on the Department’s website.) Out of the Country. If you are out of the country on the original due date of the return, you are granted an automatic four month extension to file your North Carolina individual income tax return if you fill in the circle on Page 1 of Form D-400. “Out of the Country” means you live outside the United States and Puerto Rico and your main place of work is outside the United States and Puerto Rico, or you are in military service outside the United States and Puerto Rico. The time for payment of the tax is also extended; however, interest is due on any unpaid tax from the original due date of the return until the tax is paid. Nonresident Aliens. Nonresident aliens are required to file returns at the same time they are required to file their federal returns. (For a definition of nonresident alien, see page 5.) What is the Tax Rate? For tax year 2019, the individual income tax rate is 5.25%. To calculate your North Carolina tax liability, multiply your North Carolina taxable income by 5.25% (0.0525). Can I Get an Extension to File? Beginning with tax year 2019, a taxpayer that receives an automatic extension to file a federal individual income tax return will be granted an automatic state extension to file the N.C. individual income tax return, Form D-400. In order to receive the automatic state extension, you MUST fill in the “Federal Extension” circle on page 1 of Form D-400. If you did not receive an automatic state extension to file your N.C. individual income tax return, you may still request an extension of time to file your return by filing Form D-410, Application for Extension for Filing Individual Income Tax Return, by the original due date of the N.C. tax return. Without a valid state extension, a N.C. individual income tax return filed after the original due date is delinquent and is subject to interest and all applicable penalties provided by law. Important: Although you aren’t required to make a payment of the tax you estimate as due with Form D-410, an extension of time to file a state tax return does not extend the time to pay the tax. If you don’t pay all of the taxes you owe by the original due date, you will owe interest on the remaining balance. You may also be charged penalties. (For more information on interest and penalties, see “Will I Owe Interest and Penalties?” on Page 8 of these instructions or the Department’s website.) Where Do I File? If you are due a refund and you choose not to e-file your return, mail your North Carolina individual income tax return to the following address: N.C. DEPARTMENT OF REVENUE P.O. BOX R, RALEIGH NC 27634-0001 If you are not due a refund and you choose not to e-file your return, mail your North Carolina individual income tax return, any payment due, and Form D-400V to the following address: N.C. DEPARTMENT OF REVENUE P.O. BOX 25000 RALEIGH, NC 27640-0640 Page 8 How Can I Pay? If you owe additional tax, you can pay online by bank draft (free), or credit or debit card using Mastercard or Visa ($2 convenience fee for every $100 paid). This online service is accurate, secure, and convenient. For details, visit the Department’s website. You can also pay by check or money order. Do not send cash. The Department will not accept a check, money order, or cashier’s check unless it is drawn on a U.S. (domestic) bank and the funds are payable in U.S. dollars. Make your check or money order payable to the N.C. Department of Revenue for the full amount due. Write “2019 D-400” and your name, address, and social security number on your payment. If you are filing a joint return, write both social security numbers on your payment in the order that they appear on the return. If you do not pay online, you must visit the Department’s website and generate a personalized D-400V, Individual Income Tax Payment Voucher. Submit the payment voucher with your return and payment, and mail to the following address: N.C. DEPARTMENT OF REVENUE P.O. BOX 25000 RALEIGH, NC 27640-0640 If you use tax software to prepare your return, be sure to include Form D-400V and payment with your return generated by the software package. Important: If you owe additional tax on a 2019 amended return, see “Instructions for Form D-400 Schedule AM,” on Page 21. In addition, Form D-400V Amended should be used when making a payment for a 2019 amended return. Will I Owe Interest and Penalties? Interest. If you do not pay the total amount of taxes you owe, the Department is required to charge interest on any unpaid tax. Interest is computed at the applicable rate from the original due date to the date of payment, whether or not you have been granted an extension. For most taxpayers the original due date is April 15th. To obtain the current interest rate, visit the Department’s website. If you pay your tax after the original due date, compute the amount of interest due and include the interest on Form D-400, Line 26c. Interest on the Underpayment of Estimated Tax. If your North Carolina income tax liability after tax credits and North Carolina tax withheld is $1,000 or more, you are required to pay estimated tax. Compute interest on any underpayment of estimated income tax on Form D-422, Underpayment of Estimated Tax by Individuals. Form D-422 is available on the Department’s website. Interest is not due if each payment equals 25 percent (25%) of the lesser of 90 percent (90%) (66 2/3 percent (66 2/3%) for farmers and fishermen) of the tax due on your current year’s return or 100 percent (100%) of the tax due on your previous year’s return. If interest on the underpayment of estimated tax is applicable, compute the amount of interest due and include the interest on Form D-400, Line 26e. If a refund is due, subtract the amount of the interest due from the refund. Failure to File Penalty. Returns filed after the original due date without a valid extension are subject to a penalty of 5 percent (5%) of the net tax due for each month, or part of a month, the return is late (maximum 25 percent (25%)). If you file your return late, include this penalty on Form D-400, Line 26b. Failure to Pay Penalty. Returns filed after the original due date are subject to a late payment penalty of 10 percent (10 %) of the unpaid tax. If you received a state extension to file your N.C. individual income tax return and you paid at least 90 percent (90%) of the tax due by the original due date, you will not be automatically penalized for late payment. If the 90 percent (90%) rule is met, any remaining balance due, including interest, must be paid with the income tax return on or before the extended due date to avoid the late payment penalty. If your payment is late, calculate the amount of penalty due and include it on Form D-400, line 26b. On an amended return, the late payment penalty will not be assessed if the amount shown due on the amended return is paid when the return is filed. A proposed assessment of additional tax due is subject to the 10 percent (10%) late payment penalty if payment of the tax is not received within 45 days of the date of the notice of proposed assessment. Page 9 Other Penalties. North Carolina law provides for other penalties for negligence, filing a frivolous return, and fraud. Criminal penalties also apply for fraud with intent to evade or defeat the tax and for willful failure to file a return, supply information, or pay the tax. (For more information on these penalties, see G.S. 105-236(a) or visit the Department’s website.) What if I Owe More than One Penalty? If you owe more than one penalty on your 2019 individual income tax return, compute the amount of each penalty owed and enter the total amount on Form D-400, Line 26b. Collection Assistance Fee. Any tax, penalty, and interest not paid within 60 days after a Notice of Collection is mailed will be assessed a 20 percent (20%) collection assistance fee. The fee does not apply if the tax debt is paid in full or an installment payment agreement is established with the Department before the fee is assessed. What if I am an Innocent Spouse? Generally, both spouses are jointly and severally liable for the full amount of tax due on a joint return. Thus, both spouses on a married filing jointly return are generally held responsible for all the tax due even if one spouse earned all the income or claimed improper deductions or tax credits. However, a spouse will be allowed relief from a joint state income tax liability if the spouse qualifies for federal innocent spouse relief under Internal Revenue Code section 6015. (For more information on when a spouse may be relieved of a federal tax liability, see federal publication 971, Innocent Spouse Relief.) Do I Need to Pay Estimated Income Tax? You are required to pay estimated income tax if the tax shown due on your return, reduced by your North Carolina tax withheld and allowable tax credits, is $1,000 or more regardless of the amount of income you have that is not subject to withholding. Each payment of estimated tax must be accompanied by Form NC-40, North Carolina Individual Estimated Income Tax. You can also pay your estimated tax online. (For more information, visit the Department’s website.) You should prepare your estimated tax carefully, both to avoid having to pay a large amount of tax when you file your return, and to avoid owing interest for underpayment of estimated income tax. Payment of estimated tax does not relieve you of your responsibility for filing a return if one is due. What is a Refund Setoff? If you owe another state or local agency, the amount you owe may be deducted from your refund. If you have an outstanding federal income tax liability, the Internal Revenue Service may claim your North Carolina refund. Note: The application of a refund against debts owed to state agencies, local agencies, or the Internal Revenue Service is not subject to Departmental review. Need to Call Us About Your Refund? You can check the status of your refund at the Department’s website. The automated refund inquiry line 1-877-252-4052 (toll-free) will also give you the status of your current refund. You can also obtain amended return refund information. Service is available 24 hours a day, seven days a week. You will need the first social security number and the amount of refund shown on your return when you call. What is the Statute of Limitations for Refunds? Generally, to receive a refund, your return must be filed within three years from the date the return was due or within two years after the tax was paid, whichever date is later. However, special rules extending the time for filing refund claims beyond the normal three year statute of limitations apply to overpayments attributable to (1) federal determinations, (2) worthless debts or securities, (3) capital loss carrybacks, (4) net operating loss carrybacks, or (5) a contingent event. (For more information on the statute of limitations for refunds, see G.S. 105-241.6 or visit the Department’s website.) Page 10 When Must I File an Amended Return? Generally, an amended return on which you owe additional tax is required to be filed and the tax paid within three years after the date you filed your return or within three years from the date required by law for filing the return, whichever is later. If the Internal Revenue Service makes changes to an individual’s federal return, the individual must report the changes to the state by filing an amended return within six months from the date the report from the Internal Revenue Service is received. If an individual does not amend the state return to reflect the federal changes and the Department of Revenue receives the report from the Internal Revenue Service, an assessment may be made by the Department within three years from the date of receipt of the report, and the individual’s right to any refund which might have been due by reason of the change is forfeited. In addition, if an individual voluntarily files an amended federal return that increases the amount of state tax payable, the individual must file an amended North Carolina return within six months of filing the amended federal return. If the amended federal return contains an adjustment that would decrease the amount of state tax payable, the individual may file an amended North Carolina return within the general statute of limitations for obtaining a refund. If an individual does not amend the state return to report the federal changes, an assessment may be made by the Department within three years after the date the federal amended return was filed with the Internal Revenue Service, and the individual’s rights to any refund which might have been due by reason of the amended return is forfeited. For more information on how to amend your 2019 North Carolina individual income tax return, see “Instructions for Form D-400 Schedule AM” on Page 21. (For more information on federal determinations and amended returns, see G.S. 105-159, G.S. 241.8, or visit the Department’s website.) What are My Rights as a North Carolina Taxpayer? As a taxpayer, you are always entitled to fair, professional, and courteous services. The Department’s goal is to apply the laws of North Carolina consistently and fairly so that your rights are protected and that you pay only your fair share of North Carolina tax. It is your right to have information about your tax history, financial situation, and assessment or reviews kept in strict confidence. Any return information, correspondence, or Departmental discussion concerning your tax situation is confidential. Employees or former employees who violate this confidentiality are subject to criminal prosecution and possible fines. An employee who willfully discloses tax information is also subject to dismissal. The Department routinely examines returns to ensure taxpayers comply with tax statutes. If the Department examines your return, the Department may ask you to provide information to verify items on your return. You are entitled to a fair examination and an explanation of any changes the Department proposes to your return. If you object to a proposed denial of refund or a proposed notice of tax assessment (collectively, “proposed action”), you may request a Departmental review of the proposed action by timely filing a request for Departmental review within 45 days of the date the notice was mailed or delivered to you. A request for Departmental review filed within 45 days of the date the notice was mailed or delivered to you is considered timely filed. If a request for a Departmental review is not timely filed, the proposed action is final and is not subject to further administrative or judicial review. An assessment for an amount shown due on a return but not paid, or the application of a refund against debts owed to state agencies, local agencies, or the Internal Revenue Service is not subject to Departmental review. To obtain a copy of the North Carolina Bill of Rights, visit the Department’s website. Page 11 Instructions for Form D-400, Individual Income Tax Return If you are filling out Form D-400 by hand, please use black or blue ink only. Do not use red ink or pencil. Print your letters and numbers neatly. If you do not have an entry for a particular line, leave it blank. Do not use dashes, zeros or other symbols to indicate that you have no entry for that line. (For more information on how to avoid common mistakes when filing your return, see “Before you Begin” on page 4.) Name, Address, and Social Security Number. Enter your name, address, and social security number in the spaces provided. If you are married filing jointly, enter your spouse’s name and social security number in the designated space. If you are married filing separately, provide your spouse’s name and social security number on Line 3. Important: Be sure to enter your entire nine digit social security number(s) in the appropriate boxes. Disclosing your social security number on your tax return is required under Administrative Rule 17 NCAC 06B.104. Moreover, an incorrect or missing social security number can increase your tax, reduce your refund, or delay your refund. County. Enter the first 5 letters of the county in which you resided on the last day of 2019. Your county of residence may be different than the county of your mailing address. N.C. Education Endowment Fund Contribution. You may elect to contribute to the N.C. Education Endowment Fund by making a contribution to the fund. To make a contribution, simply enclose Form NC-EDU and your payment with your Form D-400. If you owe additional income tax on your return and would like to make a contribution to the fund, you may write one check and enclose the check with both Form NC-EDU and Form D-400V. To designate part of your overpayment to the N.C. Education Endowment Fund, see the instructions for Line 31 on Page 15. Out of the Country. Fill in the circle if you or, if married filing jointly, your spouse were out of the country on the statutory due date of the return. (For more information, see “When Must I File” on page 7.) Deceased Taxpayer Information. If you are a surviving spouse or an executor, administrator, or court-appointed personal representative, (collectively “personal representative”) of an individual who died during tax year 2019, you may be required to file a return on the decedent’s behalf. If you are a personal representative and you are filing a tax return for an unmarried individual or a married filing separate return for an individual who died during tax year 2019, enter the name of the deceased and your address in the “Name and Address” section. In the “Deceased Taxpayer Information” section, fill in the circle and enter the taxpayer’s date of death. You should also sign the tax return. In addition, attach to the tax return a copy of the certificate that shows your appointment. A refund due on a return filed for a deceased taxpayer by a person other than a spouse or personal representative will be mailed to the Clerk of Superior Court of the county in which the taxpayer resided. If you are a surviving spouse and you choose to file married filing jointly with your spouse who died during tax year 2019, enter your name, the name of the deceased, and your address in the “Name and Address” section of the return. In the “Deceased Taxpayer Information” section, enter the date of the decedent’s death in the space provided. You should also sign the tax return. If you are a surviving spouse and you choose to file married filing separately for your spouse who died during tax year 2019, enter the name of the deceased taxpayer and your address in the “Name and Address” section of the return. In the “Deceased Taxpayer Information” section, enter the date of the decedent’s death in the space provided. You should also sign the tax return. Important: Form D-407, Income Tax Return for Estates and Trusts, must be filed for an estate for the period from the date of death to the end of the taxable year if the estate had taxable income from North Carolina sources or income which was for the benefit of a North Carolina resident, and the estate is required to file a federal tax return for estates and trusts. Residency Status. Fill in the applicable circles to indicate whether you and, if married filing jointly, your spouse were residents of North Carolina for the entire year. If married filing separately, do not complete the information for your spouse. (For more information on determining your residency status, see “Who Must File a North Carolina Individual Income Tax Return?” on page 5.) Important: If you or your spouse, if married filing jointly, were not full-year residents of North Carolina in tax year 2019, you must complete and attach Form D-400 Schedule PN, Part-Year Resident and Nonresident Schedule, to determine what percent of your total income is from North Carolina sources. (For more information on Form D-400 Schedule PN, see Page 19.) Veteran Information. Fill in the applicable circles to indicate whether you and, if married filing jointly, your spouse are veterans. If married filing separately, do not complete the information for your spouse. Veteran information, which is voluntarily reported, is used to compile a report about the number of veterans filing tax returns in North Carolina. No information regarding your tax liability will be shared. Information specific to individual employers or employees shall remain confidential in accordance with G.S. 105-259. Federal Extension. Fill in the circle to certify that you and, if married filing jointly, your spouse were granted an automatic extension to file your 2019 federal income tax return. Important: You must certify that you were granted an automatic federal extension. Otherwise, your state return will be subject to applicable penalties. (For more information, see “Will I Owe Interest and Penalties?” on page 8.) Lines 1 through 5 – Filing Status Fill in the circle next to the same filing status you checked on your federal tax return. If you did not file a federal tax return, you should fill in the circle that corresponds to the filing status you would have been entitled to if you had filed a federal income tax return. If your federal return does not reflect a North Carolina address, you must attach a copy of your federal tax return to your state tax return. If you file a joint federal return and your spouse is a nonresident of North Carolina who had no North Carolina taxable income, you may file a joint state return or a married filing separately state return. If you choose to file a separate North Carolina return, you must complete either a federal return as married filing separately reporting only your income and deductions or a schedule showing the computation of your separate income and deductions and attach it to your North Carolina return. Line 6 – Federal Adjusted Gross Income The starting point for determining North Carolina taxable income is federal adjusted gross income. Therefore, before you begin your Page 12 North Carolina tax return, you must determine federal adjusted gross income. If you filed a 2019 federal tax return, enter the federal adjusted gross income from your completed federal return. If you did not file a federal income tax return, you must complete a schedule showing the computation of your federal adjusted gross income and deductions. Attach the schedule to your North Carolina income tax return. Important: If federal adjusted gross income is negative, enter the amount on Line 6 and fill in the circle next to the line to indicate the amount is negative. Line 7 – Additions to Federal Adjusted Gross Income In calculating North Carolina taxable income, a taxpayer MUST add to federal adjusted gross income certain items that are taxable to North Carolina that were not included in federal adjusted gross income. Before making this entry, complete Part A of Form D-400 Schedule S. (For more information, see “Additions to Federal Adjusted Gross Income” on Page 16.) Line 9 – Deductions from Federal Adjusted Gross Income In calculating North Carolina taxable income, a taxpayer may deduct from federal adjusted gross income certain items that were taxable at the federal level that are not taxable to North Carolina. Before making this entry, complete Part B of Form D-400 Schedule S. (For more information, see “Deductions from Federal Adjusted Gross Income” on Page 17.) Line 10 – Child Deduction Line 10a. Enter the number of qualifying children for whom you were allowed a federal child tax credit for tax year 2019. Important: If you do not have a qualifying child as defined under Internal Revenue Code (“IRC”) section 24, you cannot claim the child deduction. For federal tax purposes, a qualifying child is defined as a child under age 17 at the end of 2019 who meets several other conditions as required by federal law. (For more information on determining whether your child is a qualifying child for federal tax purposes, see federal publication 972, Child Tax Credit.) Line 10b. Enter the amount of the child deduction. To compute the child deduction, complete the “Child Deduction Worksheet,” below. Child Deduction Worksheet 1. Filing status (From D-400, Lines 1 through 5)........................................................................................................ 1._________________ 2. Federal adjusted gross income (From D-400, Line 6)........................................................................................... 2._________________ 3. Number of qualifying children under age 17 for whom a federal tax credit was claimed....................................... 3._________________ Enter the amount from Line 3 above on Form D-400, Line 10a. 4. Deduction amount per qualifying child from the “Child Deduction Table”............................................................... 4._________________ 5. Child deduction (Multiply Line 3 by Line 4)............................................................................................................. 5._________________ Enter the amount from Line 5 above on Form D-400, Line 10b. Child Deduction Table Filing Status Married Filing Jointly/Qualifying Widow(er)/Surviving Spouse Head of Household Single/Married Filing Separately Federal Adjusted Gross Income Deduction Amount Per Qualifying Child Up to $40,000 Over $40,000 - Up to $60,000 $2,500 Over $60,000 - Up to $80,000 $1,500 Over $80,000 - Up to $100,000 $1,000 Over $100,000 - Up to $120,000 Over $120,000 $500 $0 $2,000 Up to $30,000 $2,500 Over $30,000 - Up to $45,000 $2,000 Over $45,000 - Up to $60,000 $1,500 Over $60,000 - Up to $75,000 $1,000 Over $75,000 - Up to $90,000 Over $90,000 $500 $0 Up to $20,000 $2,500 Over $20,000 - Up to $30,000 $2,000 Over $30,000 - Up to $40,000 $1,500 Over $40,000 - Up to $50,000 $1,000 Over $50,000 - Up to $60,000 $500 $0 Over $60,000 Page 13 Line 11 – N.C. Standard Deduction or N.C. Itemized Deductions You may deduct from federal adjusted gross income either the N.C. standard deduction or N.C. itemized deductions. In most cases, your state income tax will be less if you take the larger of your N.C. itemized deductions or your N.C. standard deduction. On Line 11, enter either the N.C. standard deduction or N.C. itemized deductions, whichever is applicable. Make sure you fill in the correct circle to indicate which deduction you are claiming. Fill in one circle only. Important: DO NOT enter the amount of your federal standard deduction or your federal itemized deductions on Line 11. The N.C. standard deduction and the N.C. itemized deductions are not identical to the federal amounts and are subject to certain North Carolina limitations. In addition, there is no additional N.C. standard deduction amount for taxpayers who are age 65 or older or blind. N.C. Standard Deduction. Use the chart below to determine the amount of your N.C. standard deduction based on your filing status: N.C. Standard Deduction Chart If your filing status is: Your standard deduction is: Single $ 10,000 Married filing jointly/Qualifying widow(er)/ Surviving spouse $ 20,000 Married filing separately If spouse does not claim itemized deductions $ If spouse claims itemized deductions 10,000 Head of household 15,000 $ 0 If you are not eligible for the federal standard deduction, your N.C. standard deduction is ZERO. (For information on who is eligible for the federal standard deduction, see federal publication 501, Dependents, Standard Deduction, and Filing Information.) Important: If you claim the N.C. standard deduction and you do not have any additions to or deductions from federal adjusted gross income, DO NOT complete Form D-400 Schedule S. N.C. Itemized Deductions. To compute North Carolina itemized deductions, complete Form D-400 Schedule S, Part C, Lines 16 through 24. (For more information, see “N.C. Itemized Deductions” on Page 18.) Line 13 – Part-Year Residents and Nonresidents Taxable Percentage Part-year residents and nonresidents enter the taxable percentage as calculated on Form D-400 Schedule PN. The taxable percentage must be entered as a decimal amount; round to four decimal places. Note: The resulting percentage may be greater than 100%. (For more information on completing Form D-400 Schedule PN, see instructions on Page 19.) Important: You must attach Form D-400 Schedule PN to Form D-400 if you or, if married filing jointly, your spouse, were either a part-year resident or nonresident and you entered a taxable percentage on Line 13. Include a copy of your federal return if your federal return does not reflect a North Carolina address. Line 14 – North Carolina Taxable Income If you were a resident of North Carolina for the entire year, enter the amount from Line 12b on Line 14. If you were a part-year resident or nonresident, multiply the amount from Line 12b by the taxable percentage on Line 13. Important: If North Carolina taxable income is negative, enter the amount on Line 14 and fill in the circle next to the line to indicate the amount is negative. Line 15 – North Carolina Income Tax To calculate your North Carolina income tax, multiply Line 14 by the income tax rate of 5.25% (0.0525). If North Carolina taxable income is zero or less, enter a zero on Line 15. Line 16 – Tax Credits If you claim income tax credits on Line 16, you must complete Form D-400TC. (For more information on completing Form D-400TC, see Page 19.) Important: Failure to substantiate a tax credit may result in the disallowance of the tax credit. Line 18 – Consumer Use Tax North Carolina use tax is due by individuals and businesses on tangible personal property purchased, leased or rented inside or outside this state for storage, use, or consumption in North Carolina pursuant to G.S. 105-164.6. Use tax is also due on taxable services sourced to North Carolina and certain digital property purchased inside or outside this state for storage, use, or consumption in North Carolina. Some out-of-state retailers, remote sellers or facilitators voluntarily collect North Carolina use tax as a convenience to their customers. Individuals and businesses must pay use tax to the Department when retailers, remote sellers, or facilitators do not collect sales or use tax on taxable transactions. For additional information about consumer use tax, visit the Department’s website. Complete Line 18 to report any consumer use tax that is due. To determine the correct amount of consumer use tax due for 2019, utilize the use tax table or the use tax worksheets on Page 24. Note: If you certify that no Consumer Use Tax is due, fill in the circle in the space provided. Lines 20a and 20b – N.C. Income Tax Withheld Enter your North Carolina tax withheld on Line 20a. If you are married filing jointly, enter your North Carolina withholding on Line 20a and your spouse’s withholding on Line 20b. Do not include any income tax withheld for a state other than North Carolina or any other tax amounts that were withheld. Important: Be sure to attach to your return all wage and tax statements (W-2’s), 1099s, and other statements on which N.C. income tax withholding amounts appear. It is not necessary to attach 1099s on which no North Carolina income tax withheld is Page 14 reported unless you are claiming a Bailey retirement deduction. (See Form D-400 Schedule S, Part B, Line 10.) W-2’s or 1099 statements generated by tax software programs cannot be used to verify North Carolina tax withholding. Line 21 – Other Tax Payments a. 2019 Estimated Tax. Enter any estimated income tax payments for 2019 (including any portion of your 2018 refund that was applied to your 2019 estimated income tax). b. Paid with Extension. If you applied for a N.C. extension (Form D-410), enter the amount of North Carolina income tax paid with the extension. c. Partnership. If you are a nonresident partner, enter your share of the tax paid to North Carolina by the manager of the partnership on your distributive share of the partnership income. Include with your return a copy of Form NC K-1 for Form D-403 provided by the partnership to verify the amount claimed. d. S Corporation. If you are a nonresident shareholder of an S corporation, enter your share of the income tax paid to North Carolina by an S corporation on your distributive share of the S corporation income. Include with your return a copy of Form NC K-1 for Form CD-401S provided by the S corporation to verify the amount claimed. b. Penalties. Returns filed after the original due date without a valid state extension are subject to a failure to file penalty of 5% of the tax for each month, or part of a month, the return is late (maximum 25% of the additional tax due). Returns filed after the original due date are subject to a late payment penalty of 10% of the unpaid tax. To determine if any penalties apply to you, see “Will I Owe Interest and Penalties?” on Page 8. c. Interest. Interest at the rate established by G.S. 105241.21 is charged on taxes paid after the original due date even if an extension of time to file is granted. The interest rate on underpayments is the same as the interest rate on overpayments. The rate is established semiannually by the Secretary of Revenue and is listed on the Department’s website. d. Total Penalties and Interest. Add Lines 26b and 26c and enter the total amount of penalties and interest on Line 26d. e. Interest on the Underpayment of Estimated Income Tax and Exceptions. You may owe interest if you underpaid your estimated tax for any payment period. You will not owe interest if you had no tax liability in the prior year or if this year’s tax liability, less any amount withheld and allowable tax credits, is less than $1,000. Complete Form D-422 to see if you owe interest on the underpayment of estimated income tax. Enter the correct amount of interest on Line 26e. The interest will increase your tax liability or reduce your overpayment. Do not attach Form D-422 or D-422A to the completed tax return; however, you should maintain the forms for future reference. Exceptions to Underpayment of Estimated Tax. In certain cases, you may be able to reduce or eliminate underpayment interest. If either of the following exceptions apply, enter the exception code in the box provided and enter the interest amount on Line 26e. Line 22 – Amended Returns Only (Previous Payments) Complete Line 22 only if you are amending your 2019 tax return. Enter the amount of tax paid with the original return (Form D-400, Line 27) plus any additional tax paid after the original return was filed. If you did not pay the entire balance due shown on your original return, enter the actual amount that was paid. Do not include payments of interest or penalties. (For more information, see “Instructions for Form D-400 Schedule AM,” on Page 21.) Line 24 – Amended Returns Only (Previous Refunds) Complete Line 24 only if you are amending your 2019 return. Enter the amount of overpayment, if any, shown on the original return (Form D-400, Line 28). If the overpayment claimed on your original return was previously adjusted by the Department, enter the adjusted overpayment on Line 24. The amount includes any portion that was refunded or applied to any outstanding debt or estimated tax, or was contributed to the N.C. Nongame and Endangered Wildlife Fund, the N.C. Education Endowment Fund, or the N.C. Breast and Cervical Cancer Control Program. Do not include interest you received on any refund. (For more information, see “Instructions for Form D-400 Schedule AM,” on Page 21.) Lines 26a through 26e – Tax, Penalties, and Interest a. Tax Due. If Line 19 is more than Line 25, you owe additional tax. Subtract Line 25 from Line 19 and enter the result on Line 26a. If Line 25 is negative, treat Line 25 as a positive number, add Lines 19 and 25 and enter the additional tax on Line 26a. a. Farmers and Fisherman. If you are a farmer or fisherman and you file your 2019 N.C. return and you pay your tax in full by March 1, 2020, you do not owe interest. You are a farmer or fisherman if you received at least two-thirds of your gross income for the year from farming or fishing. Enter an “F” in the box provided. b. Annualized Income. If you completed Form D-422A, Annualized Income Installment Worksheet, to determine the amount of interest owed, enter an “A” in the box provided. Line 27 – Tax Due Add Lines 26a, 26d, and 26e and enter the total on Line 27. This is the total tax, penalties, and interest due. Mail your return and payment to the North Carolina Department of Revenue, P.O. Box 25000, Raleigh, North Carolina 27640-0640. Make your check or money order payable to the “North Carolina Department of Revenue.” The Department will not accept a check or money order unless it is drawn on a U.S. (domestic) bank and the funds are payable in U.S. dollars. Important: You can pay any tax due online using the Department’s website. (For more information on payment options, visit the Department’s website.) Form D-400V (Individual Income Payment Voucher). Form D-400V is a personalized payment voucher that you should Page 15 send with any balance due. This voucher allows the Department to process payments more accurately and efficiently with fewer errors. To generate a personalized payment voucher, visit the Department’s website. Form D-400V Amended (Amended Individual Income Payment Voucher). When filing an amended 2019 tax return, an individual who owes additional tax should include Form D-400V Amended. Form D-400V Amended allows the Department to process amended payments more accurately and efficiently with fewer errors. To generate an amended personalized payment voucher, visit the Department’s website. Form NC-EDU (N.C. Education Fund Contribution). Form NC-EDU is a personalized voucher that you must send with any contribution made to the N.C. Education Fund. The voucher allows the Department to process the contribution accurately and efficiently with fewer errors. To generate the N.C. Education Fund personalized payment voucher, visit the Department’s website. Note: If you owe additional tax and would like to make a contribution to the N.C. Education Endowment Fund, you may write one check for the combined amount of tax due plus the contribution. Enclose the check with both Form NC-EDU and Form D-400V. The Department strongly encourages the use of personalized payment vouchers. Line 28 – Overpayment If Line 19 is less than Line 25, you have overpaid your tax. Subtract Line 19 (and any amount shown on Line 26e) from Line 25 and enter the amount of the overpayment on Line 28. Line 29 – Estimated Income Tax If you have overpaid your tax, you may elect to have a portion of your overpayment applied to your estimated tax for the following year by entering the amount to be applied on Line 29. The election to apply any overpayment to 2020 cannot be changed after the 2019 return is filed. The last allowable date for making a 2020 estimated tax payment is January 15, 2021; therefore, to apply a portion of your refund to 2020 estimated tax, you must file your 2019 return by January 15,
Extracted from PDF file 2019-north-carolina-form-d-401.pdf, last modified November 2019

More about the North Carolina Form D-401 Individual Income Tax TY 2019

We last updated the Individual Income Tax Instructions for Form D-400 in February 2020, so this is the latest version of Form D-401, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form D-401 directly from TaxFormFinder. You can print other North Carolina tax forms here.


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Related North Carolina Individual Income Tax Forms:

TaxFormFinder has an additional 44 North Carolina income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the North Carolina Form D-401.

Form Code Form Name
Form CD-401S S Corporation Tax Return
CD-401S Instructions S-Corporation Tax Return Instructions

Download all NC tax forms View all 45 North Carolina Income Tax Forms


Form Sources:

North Carolina usually releases forms for the current tax year between January and April. We last updated North Carolina Form D-401 from the Department of Revenue in February 2020.

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About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of North Carolina Form D-401

We have a total of nine past-year versions of Form D-401 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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