Form D-400tc - General Information For Claiming Tax Credits, Form D-429 - Worksheet For Determining The Credit For The Disabled Taxpayer Page 4

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Form D-429 Reverse
INSTRUCTIONS
Credit for Disabled Taxpayer:
If you claim an income tax credit on your federal tax return for being permanently and totally disabled,
as indicated by checking boxes 2, 4, 5, 6, or 9 on page 1 of Federal Schedule R, or on page 1 of Schedule
3, Form 1040A, you may claim a tax credit on your North Carolina return equal to one-third (1/3) of the
amount of the federal tax credit. If you claim this credit you must attach Federal Schedule R (Credit for
the Elderly or Disabled) or Schedule 3, Form 1040A to your North Carolina income tax return. Although
the federal tax credit is also allowed for being 65 or older, no portion of the tax credit is allowed on the North
Carolina tax return for being age 65 or older; therefore, if you check boxes 1, 3, 7, or 8 on page 1 of Federal
Schedule R or on page 1 of Schedule 3, Form 1040A, you are not entitled to the tax credit for a disabled
taxpayer.
Complete lines 1 and 13 (and 14 if applicable) to determine the tax credit for a disabled taxpayer.
Credit for Disabled Dependent or Disabled Spouse:
You may be entitled to a tax credit if a dependent or spouse for whom you are allowed an exemption
on your federal return is permanently and totally disabled. To qualify for the credit, a statement from a
physician or local health department must be attached to your tax return certifying that the dependent or
spouse was unable to engage in any substantial gainful activity by reason of a physical or mental impairment
that can be expected to result in death or that has lasted or can be expected to last for a continuous period
of not less than 12 months.
For a taxpayer whose North Carolina adjusted gross income does not exceed the base income
amount for his filing status, the credit is the initial credit amount as shown in the table at the bottom of
page 1. For a taxpayer whose North Carolina adjusted gross income exceeds the base income amount,
the initial credit is reduced by $4.00 for every $1,000 by which the North Carolina adjusted gross income
exceeds the base income amount.
Complete lines 2 through 13 (and 14 if applicable) to determine the tax credit for a disabled dependent
and/or spouse. Complete separate worksheets for each disabled dependent or spouse.
(IMPORTANT: A nonresident or part-year resident who claims a tax credit for the disabled
must prorate the credit by multiplying the credit by the decimal amount shown on Form D-400,
Line 12.)

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