Form D-400tc - General Information For Claiming Tax Credits, Form D-429 - Worksheet For Determining The Credit For The Disabled Taxpayer Page 2

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General Information for Claiming Tax Credits - Form D-400TC
Credit for Charitable Contributions by Nonitemizers
If you claimed the standard deduction on your federal return, you may claim a tax credit for charitable contributions. You may not claim the credit
if you claimed itemized deductions on your federal return. The allowable credit equals 7 percent of the amount by which your charitable contributions
for the taxable year exceed 2 percent of your federal adjusted gross income. The credit may not be claimed for contributions for which the credit for
certain real property donations or the credit for gleaned crops is claimed. A nonresident or part-year resident may claim a prorated credit equal to the
percentage of income that is subject to North Carolina tax. The credit may not exceed the tax liability for the tax year, reduced by other tax credits.
Complete the following worksheet to determine the allowable credit.
Worksheet for Determining Tax Credit for Charitable Contributions
Note: You may not claim this credit if you claimed itemized deductions on your federal return.
1.
Enter the amount of your charitable contributions for the taxable year ............................................................................. 1. _________
2.
Multiply your federal adjusted gross income from your federal return (Form 1040, Line 34; Form 1040A, Line 21;
Form 1040EZ, Line 4; or TeleFile Tax Record, Line I) by 2% and enter the result here.
(Federal AGI __________ X .02) ....................................................................................................................... 2. _________
3.
Subtract Line 2 from Line 1. If Line 2 equals or exceeds Line 1, STOP HERE. Enter - 0- on Form D-400TC, Line 20 ............ 3. _________
4.
Multiply Line 3 by 7% (.07) and enter the result. Full-year residents enter this amount on Line 6 ............................... 4. _________
5.
Nonresidents and part-year residents multiply the amount on Line 4 by the decimal amount from Form D-400, Line 12
and enter the result here and on Line 6. If Line 12 is more than 1.0000, enter the amount from Line 4 here and on Line 6 ........... 5. _________
6.
Credit for charitable contributions (Enter on Form D-400TC, Line 20) ............................................................................. 6. _________
Credit for Premiums Paid on Long-Term Care Insurance Contracts
A tax credit is allowed for the qualifying premiums you paid during the taxable year on a qualified long-term care insurance contract(s) (as
defined in section 7702B of the Internal Revenue Code) that provides insurance coverage for yourself, your spouse, or a dependent for whom
you are allowed to claim a personal exemption on your federal return. Medical insurance premiums that you pay for general health
care, hospitalization, or disability insurance do not qualify as premiums paid for a long-term care insurance contract. A long-
term care insurance contract is any insurance contract under which the only insurance protection provided is for coverage of qualified long-
term care services as defined in section 7702B of the Internal Revenue Code. Qualified long-term care services are those services required
by a chronically ill individual and provided under a plan of care prescribed by a licensed health care practitioner.
The credit is 15 percent of the premiums paid but may not exceed $350 for each qualified long-term care insurance contract for which a credit
is claimed.
No credit is allowed for payments that are deducted from, or not included in, your federal gross income for the taxable year. An example of
payments that are not included in federal gross income is premiums paid through an employer-sponsored plan in which the payments are excluded
from taxable wages (pre-taxed dollars). If you claimed a deduction for medical expenses on Federal Schedule A, Line 4, or if you claimed
a deduction for self-employed health insurance premiums on Federal Form 1040, Line 29, you are not entitled to claim this credit.
However, you may claim this credit for any premiums paid for long-term care insurance that are not deductible on your federal
return because of the age limitations contained in section 213(d)(10) of the Internal Revenue Code.
A nonresident or part-year resident is allowed the tax credit in the proportion that federal taxable income (as adjusted) is taxable to North Carolina.
Complete the following worksheet to determine the allowable credit.
Worksheet for Determining Tax Credit for Premiums
Paid on Long-Term Care Insurance Contracts
1. Enter the amount of premiums you paid on a long-term care insurance contract(s) for the taxable year. Do not include
1.
____________
premiums that you paid through a cafeteria plan or flexible spending arrangement offered by your employer. ..............
2. Multiply Line 1 by 15% (.15). Full-year residents enter this amount on Line 4.
2.
____________
(Do not enter more than $350 per contract) ........................................................................................................................
Nonresidents and part-year residents multiply the amount on Line 2 by the decimal amount from Form D-400, Line 12
3.
3
.____________
and enter the result here and on Line 4. If Line 12 is more than 1.0000, enter the amount from Line 2 here and on Line 4 ......
4
4.
Credit for long-term care insurance premiums (Enter on Form D-400TC, Line 21) ..........................................................
.____________
Credit for Qualified Business Investments
A tax credit is allowed for qualifying investments in the equity securities or subordinated debt of a qualified business venture, qualified
grantee business, or a qualified licensee business. The credit is 25 percent of the amount invested or $50,000, whichever is less. The tax
credit is not allowed for the year in which the investment is made but is allowed for the taxable year beginning during the calendar year
following the calendar year in which the investment was made. Any unused credit may be carried forward for the next succeeding five years.
Your basis in the equity securities or subordinated debt acquired as a result of your investment must be reduced by the amount of allowable
credit.
To be eligible for the tax credit, you must file Form D–499, Application for Tax Credit for Qualified Business Investments, with the
Secretary of Revenue on or before April 15 of the year following the calendar year in which the investment was made. The date set for filing
the application may be extended provided you furnish a written statement by April 15 requesting that you be allowed additional time in which
to file the application. However, the date for filing the application may not be extended by the Secretary beyond September 15. An extension
of time to file your individual income tax return (Form D–400) does not extend the time for filing Form D–499. See Page 2 of
Form D–499 for additional rules and regulations for claiming the credit. The allowable credit should be shown on Form D-400TC, Line 22.

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