Form Nc-40 - Individual Estimated Income Tax - North Carolina Department Of Revenue printable pdf download

North Carolina

Form

NC-40

Individual Estimated Income Tax

Instructions

This form is primarily for first time payers. You will

need this form to make all of your estimated

income tax payments for the year. Next year, you

will be mailed forms pre-printed with your name,

address, and social security number to use when

you make your estimated income tax payments.

“Estimated Income Tax”

is the amount of

September 15:

pay 3/4 of the balance of the

Completing the Estimated Income

income tax you expect to owe for the year after

net estimated income tax at that

Tax Form (NC-40)

subtracting the amount of tax you expect to have

time and the remaining 1/4 on

withheld and the amount of any tax credits you

January 15.

The detachable estimated income tax forms are

plan to claim.

located on Pages 2 and 3. The instructions that follow

If you file your income tax return (Form D-400) by

will help you complete the forms correctly.

Who Must Make Estimated Income

January 31 of the following year and pay the entire

Tax Payments

balance due, you do not have to make the payment

(1) First complete the worksheet on Page 2 to

which would otherwise be due on January 15.

determine your estimated income tax for the tax year.

You should make estimated income tax payments if

Farmers and Fishermen

(2) When sending your first payment, use the

the tax due on your individual tax return, reduced by

detachable NC-40 form at the bottom of Page 3.

the amount of tax withheld and tax credits, will be

If at least two-thirds of your estimated gross income

Enter your name, address, and social security number

$1,000 or more.

is from farming (including oyster farming) and/or

in the space provided on the form. If you intend to

commercial fishing, your estimated income tax

You should estimate your income tax carefully to

file a joint income tax return, please enter your

may be paid at any time on or before January 15

avoid having to pay a large balance when you file

name and social security number and your spouse’s

of the following year.

If your income tax return

your income tax return (Form D-400) and to avoid a

name and social security number on the form. Enter

(Form D-400) is filed and the total tax is paid on

penalty for underpayment of estimated income tax

in the applicable box the year for which the payment

or before March 1, you do not have to make an

(see discussion on Penalty for Failure to Pay Your

is intended. Fiscal year taxpayers enter the beginning

estimated income tax payment.

Estimated Income Tax). You may find it convenient

and ending dates of the fiscal year in the boxes

to increase your withholding tax to avoid paying

provided. It is important to tear the NC-40 forms from

Fiscal Year

estimated income tax. If you do choose to increase

the bottom up (page 3 to page 2) to keep the

the amount withheld, you should make sure the

instructions from becoming separated until the final

If your income is reported on a fiscal year basis,

balance due on your income tax return will be less

payment is made.

your due dates are the 15th day of the 4th, 6th and

than $1,000.

9th months of your fiscal year, and the first month of

(3) Enter one-fourth (1/4) of the amount shown on

When To Pay Your Estimated Income Tax

the following fiscal year. For more information on

Line 9 of the worksheet in the space marked “Amount

how to complete the Form NC-40 when paying your

of this Payment” on the NC-40 form. (EXCEPTION:

Generally you must make your first estimated income

estimated income tax on a fiscal year basis, please

If you paid too much tax on your income tax return

tax payment by April 15. You must either pay all of

refer to the instructions on Completing the Estimated

(Form D-400) for the previous year, you may have

your estimated income tax at that time or pay in four

Income Tax Form (NC-40) on this page.

chosen to apply the overpayment to your estimated

equal amounts on or before April 15, June 15,

income tax for the following year. If so, you may

Penalty for Failure to Pay Your

September 15 and January 15 of the following year.

apply all or part of the overpayment to any estimated

When the due date for the estimated income tax

Estimated Income Tax

income tax installment. Send Form NC-40 only when

payment falls on a Saturday, Sunday or holiday, the

you are making a payment.)

You may be charged a penalty for underpayment of

payment is due on or before the next business day.

estimated income tax or for not making payments on

(4) Detach the form at the perforations.

Although a payment of estimated income tax may

time. The penalty does not apply if each installment

(5) Make your check or money order payable to the

not be due on April 15 based on your situation at that

payment is timely and equals twenty-five percent

N.C. Department of Revenue. Pay in U. S. currency

time, your expected income or exemptions may

(25%) of the lesser of: (a) 90% (66 2/3% for farmers

only. Please do not send cash.

change so that a payment is due at a later date. In

and fishermen) of the tax due on your current year’s

such cases, the payment dates are as follows:

return; (b) 100% of the tax due on your previous

(6) Enter your social security number on your check or

year’s return, if your previous year’s return was a

money order.

If requirement is met after: Payment date is:

taxable year of 12 months and a return was filed for

that year; or (c) 90% of the tax figured by annualizing

(7) Mail the completed estimated income tax form

-April 1 and before June 1

June 15

the taxable income received during the year up to

(NC-40) with your payment to: NC Department of

-June 1 and before September 1

September 15

the month in which the installment is due.

Revenue, Post Office Box 25000, Raleigh, North

-September 1

January 15

Carolina 27640-0630.

An underpayment penalty does not apply if you had

If the first estimated income tax payment you are

no tax liability for the previous year.

(8) To insure proper credit, please do not fold the

required to make is due after April 15, or if you are

form or the payment. Do not staple, tape, or

required to change your payments after paying the

Compute the penalty on Form D-422, Underpayment

otherwise attach your payment to the form.

first installment, you should pay the remaining

of Estimated Tax by Individuals. You may obtain

installments as follows:

the form by writing the N.C. Department of Revenue,

Post Office Box 25000, Raleigh, North Carolina

If the installment is due-

27640-0001, b y calling the Department at

June 15:

pay 1/2 of the balance of the

1-877-252-3052 (toll-free), or from the Department’s

net estimated income tax at that

website at

time, 1/4 of the balance on

Continued on page 2

September 15 and the remaining

1/4 on January 15.

Form Nc-40 - Individual Estimated Income Tax - North Carolina Department Of Revenue

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