Instructions For Form D-400 - North Carolina Individual Income Tax

General Information for Claiming Tax Credits - Form D-400TC

Page 18

Credit for Children

You may claim a child tax credit of $100 on your State return for each dependent child for whom you are entitled to claim a child tax credit on your

federal return if your federal adjusted gross income (Form D-400, Line 6) is less than the following amount shown for your filing status: Married filing

jointly/qualifying widow(er) - $100,000; Head of household - $80,000; Single - $60,000; or Married filing separately - $50,000.

The credit for children can be claimed only for a child who was under 17 years of age on the last day of the year. A part-year resident or

nonresident may claim a prorated credit based on the percentage of income that is subject to North Carolina tax.

Complete Form D–400TC, Part 3 to determine the allowable credit.

Credit for Charitable Contributions by Nonitemizers

If you claimed the North Carolina standard deduction on your return, you may claim a tax credit for charitable contributions. You may not claim the credit

if you claimed North Carolina itemized deductions on your return. The allowable credit equals 7% of the amount by which your charitable contributions for

the taxable year exceed 2% of your federal adjusted gross income. The credit may not be claimed for contributions for which credits for certain real property

donations, gleaned crops, or recycling oyster shells are claimed. A part-year resident or nonresident may claim a prorated credit based on 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 North Carolina itemized deductions on your return.

Enter the amount of your charitable contributions for the taxable year .....................................................................................................1. ___________

Multiply your federal adjusted gross income

by 2% and enter the result here.

(Form D-400, Line 6)

(Federal AGI

____________ X .02) ..........................................................................................................................................................2. ___________

Subtract Line 2 from Line 1. If Line 2 equals or exceeds Line 1, STOP HERE. Enter - 0 - on Form D-400TC, Line 20b ..........................3. ___________

Multiply Line 3 by 7% (.07) and enter the result. Full-year residents enter this amount here and on Line 7 .....................................4. ___________

Part-year residents and nonresidents - enter the decimal amount from Line 16 of Form D-400. (If Line 16 is more than

1.0000, skip Lines 5 and 6, and enter the amount from Line 4 on Line 7)...............................................................................................5. ___________

Multiply the amount on Line 4 by the decimal amount on Line 5. Enter the result here and on Line 7 .......................................................6. ___________

Credit for charitable contributions (Enter on Form D-400TC, Line 20b) ...............................................................................................................7. ___________

Credit for Premiums Paid on Long-Term Care Insurance Contracts

If your federal adjusted gross income (Form D-400, Line 6) is less than the following amounts for your filing status (Married filing jointly/qualifying

widow(er) - $100,000; Head of household - $80,000; Single - $60,000; or Married filing separately - $50,000), 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% 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. For example, payments

that are not included in federal gross income are 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 part-year resident or nonresident may claim a prorated credit based on the percentage of income that is subject to North Carolina tax.

Complete the worksheet on Page 19 to determine the allowable credit.

Instructions For Form D-400 - North Carolina Individual Income Tax - 2013 Page 18

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