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Form D-429 - Worksheet For Determining The Credit For The Disabled Taxpayer, Dependent Or Spouse Page 2

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, 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)

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, 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 part-year resident or nonresident 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 16.)

Form D-429 - Worksheet For Determining The Credit For The Disabled Taxpayer, Dependent Or Spouse Page 2