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Instructions for Completing Form NC-4

Form NC-4

Instructions

Employee’s Withholding Allowance Certificate

Web

10-12

North Carolina Department of Revenue

General Instructions

PURPOSE - Complete Form NC-4, Employees Withholding

completed and given to your employer by December 1 to maintain

Allowance Certificate, so that your employer can withhold the

your exempt status for the following tax year. If you do not provide

correct amount of State income tax from your pay.

You should

a new NC-4 by December 1, the employer is required to withhold

consider completing a new NC-4 if your personal or financial

based on single status with zero allowances. However, if during

situation has changed from the previous year.

the year you no longer meet the requirement for exemption on line

4, you must complete a new NC-4.

BASIC INSTRUCTIONS - Complete the Personal Allowances

Worksheet on Page 2 of Form NC-4. An additional worksheet

HEAD OF HOUSEHOLD - Generally you may claim head of

is provided on Page 2 for employees to adjust their withholding

household status on your tax return only if you are unmarried and

allowances based on itemized deductions, adjustments to income,

pay more than 50% of the costs of keeping up a home for yourself

or tax credits. The worksheets will help you figure the number

and your dependent(s) or other qualifying individuals. Note: “Head

of withholding allowances you are entitled to claim. However,

of Household” for State tax purposes is the same as for federal tax

you may claim fewer allowances if you wish to increase the tax

purposes.

withheld during the year. If your withholding allowances decrease,

you must file a new NC-4 with your employer within 10 days after

QUALIFYING WIDOW(ER) - You may claim qualifying widow(er)

the change occurs except that a new NC-4 is not required until the

status only if your spouse died in either of the two preceding tax

next year in the following cases:

years and you meet the following requirements:

When a dependent dies during the year.

Your home is maintained as the main household of a child or

When an individual ceases to be a dependent during the year

stepchild for whom you can claim an exemption; and

and the support furnished will be the chief support for the

You were entitled to file a joint return with your spouse in the

year.

year of your spouse’s death.

When an individual ceases to be head of household after

maintaining the household for the major portion of the year.

Note: “Qualifying Widow(er)” for State tax purposes is the same

as for federal tax purposes. Because the standard deduction used

EXEMPTION FROM WITHHOLDING - Read lines 3 and 4 of Form

in the tax tables for married and qualifying widow(er) is $3,000 and

NC-4 to see if you can claim exempt status.

you are entitled to a standard deduction of $6,000, you may elect

to claim an additional personal withholding allowance on line C of

Military Spouses: Under the Servicemembers Civil Relief Act

the Personal Allowances Worksheet to avoid having too much

(“SCRA”), as amended by the Military Spouses Residency Relief

tax withheld.

Act of 2009, your wages are exempt from North Carolina income

tax if (1) you are the spouse of a servicemember who is not legally

MARRIED AND SPOUSE DOES NOT WORK OR HAS WAGE

domiciled in North Carolina and who is in North Carolina solely in

INCOME OF LESS THAN $3,500 - The withholding tax tables are

compliance with military orders; (2) you are in North Carolina solely

based on both spouses earning wages during the year. If your

to be with your spouse; and (3) you are domiciled in the same state

spouse does not work or will earn wages of less than $3,500

during the year, you may elect to complete line B of the Personal

as the servicemember. If you claim exemption under the SCRA,

enter your state of domicile on line 4 and enter “EXEMPT” in the

Allowances Worksheet to avoid having too much tax withheld.

applicable box. You must attach a copy of your spousal military

identification card and a copy of the servicemember’s most recent

TWO JOBS - If you have more than one job, figure the total

leave and earnings statement. With respect to the military spouse

number of allowances you are entitled to claim on all jobs using

exemption, neither spouse qualifies for exemption under the Military

only one Form NC-4. This total should be divided among all jobs.

Spouses Residency Relief Act if both spouses are servicemembers

Your withholding will usually be most accurate when all allowances

who are in North Carolina in compliance with military orders. If a

are claimed on the NC-4 filed for the higher paying job and zero

servicemember is stationed in a state other than North Carolina and

allowances are claimed for the other.

the servicemember’s spouse performs services in North Carolina,

that spouse’s earned income is not exempt from North Carolina

NONWAGE INCOME - If you have a large amount of nonwage

withholding or North Carolina individual income tax.

income, such as interest or dividends, you should consider making

estimated tax payments using Form NC-40.

If you meet the conditions for exemption on line 3 or 4, only complete

those lines; do not complete lines 1 and 2. No State income tax

All NC-4 forms are subject to review by the North Carolina

will be withheld from your pay. If claiming exempt, the statement is

Department of Revenue. Your employer may be required to

effective for one calendar year only and a new statement must be

send this form to the North Carolina Department of Revenue.

Form Nc-4 - Instructions For Completing Form Nc-4 Employee'S Withholding Allowance Certificate

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