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

Instructions for Filing Form D-400

Page

Carolina, you are liable for North Carolina income

to include with your return and payment the Form

assessment may be made by the Department

tax and North Carolina income tax should be

D-400V generated by the software package.

within three years from the date of receipt of the

report, and you forfeit your right to any refund which

withheld from your pay regardless of where you

may be stationed. If you are a legal resident

might have been due by reason of the changes.

Estimated Income Tax

of another state stationed in North Carolina

on military orders, you are not liable for North

Penalties and Interest

Carolina income tax on your military pay, but

You are required to pay estimated income tax

income from other employment, a business, or

if the tax shown due on your return, reduced by

tangible property in North Carolina is subject to

your North Carolina tax withheld and allowable

Failure to file penalty. Returns filed after the

North Carolina income tax.

tax credits, is $1,000 or more regardless of the

due date are subject to a penalty of 5 percent of the

amount of income you have that is not subject

tax for each month, or part of a month, the return

to withholding. Each payment of estimated tax

is late (maximum 25 percent of the additional tax).

Military Spouses

must be accompanied by Form NC-40, North

If you file your return late, figure the amount of the

Carolina Individual Estimated Income Tax.

penalty and add it to the tax due.

The Military Spouses Residency Relief Act

If you are filing estimated tax for the first time,

contact any of our offices so that appropriate

Failure to pay penalty. Returns filed after April

of 2009 prohibits North Carolina from taxing the

income earned for services performed in North

forms can be mailed to you. You can also pay

15 without a valid extension are subject to a late-

your estimated tax online at

payment penalty of 10 percent of the unpaid tax. If

Carolina by a spouse of a servicemember stationed

Click on Electronic Services.

you have an extension of time for filing your return,

in North Carolina if (1) the servicemember is

the 10 percent penalty will apply on the remaining

present in North Carolina solely in compliance

You should prepare your estimated tax

with military orders; (2) the spouse is in North

balance due if the tax paid by the original due date

carefully, both to avoid having to pay a large

of the return is less than 90 percent of the total

Carolina solely to be with the servicemember; and

amount of tax when you file your return, and

amount of tax due. If the 90 percent rule is met,

(3) the spouse is domiciled in the same state as

to avoid owing interest for underpayment of

any remaining balance due, including interest, must

the servicemember. If all three of the conditions

estimated income tax. Payment of estimated tax

are met, an employer is not required to withhold

be paid with the income tax return on or before

does not relieve you of your responsibility for filing

the extended due date to avoid the late-payment

North Carolina tax from wages paid to such military

a return if one is due.

penalty. If your payment is late, figure the amount

spouses. A spouse who does not meet these

of the penalty and add it to the tax due.The late-

requirements should see “Information for Part-Year

Statute of Limitations

payment penalty will not be assessed if the amount

Residents and Nonresidents” below regarding

shown due on an amended return is paid with the

the filing of their return. The Act does not apply

return. Proposed assessments of additional tax

to military spouses who are domiciled in North

Generally, to receive a refund, your return

due are subject to the 10 percent late-payment

Carolina. Withholding from wages paid to military

must be filed within three years from the date the

penalty if payment of the tax is not received within

spouses domiciled in North Carolina is still required.

original return was due or within two years after

45 days of the assessment.

the tax was paid, whichever date is later. However,

Death of the Taxpayer

special rules extending the time for filing refund

Other penalties. There are other penalties

claims beyond the normal three year statute of

for negligence, filing a frivolous return, and fraud.

limitations apply to overpayments attributable to

Criminal penalties also apply for fraud with intent

If you are the spouse or personal representative

(1) worthless debts or securities, (2) capital loss

to evade or defeat the tax and for willful failure to

of an individual who died prior to filing a return, you

carrybacks, (3) net operating loss carrybacks, or

file a return, supply information, or pay the tax.

may be required to file a return on the decedent’s

(4) a contingent event. For overpayments resulting

behalf.

If so, enter the date of death in the

Collection Assistance Fee. Any tax, penalty,

from worthless debts or securities, the period of

applicable box on Page 1 of Form D-400 to indicate

and interest not paid within 90 days after the debt

time for demanding an overpayment is seven

the return is being filed for a deceased individual.

becomes collectible is subject to a 20 percent

years; for overpayments resulting from capital loss

collection assistance fee.

or net operating loss carrybacks, the period of time

An Income Tax Return for Estates and Trusts,

is three years from the due date of the return for

Form D-407, must be filed for an estate for the

Interest. Interest is due on tax not paid by April

the year in which the loss was incurred rather than

period from the date of death to the end of the

15, even though you may have an extension of

three years from the due date of the return for the

taxable year if the estate had taxable income

time for filing your return. You may obtain the

year to which the loss is carried back. If you are

from North Carolina sources or income which

current interest rate from any of the Department’s

subject to a contingent event and file notice with

was for the benefit of a North Carolina resident,

offices. If you pay your tax late, figure the amount

the Secretary of Revenue, the period to request

and the estate is required to file a federal return

of interest due and include it with the tax and any

a refund of an overpayment is six months after

for estates and trusts.

applicable penalty.

the contingent event concludes.

If you are filing a return for an unmarried

Interest on the underpayment of estimated

individual who died during the year, enter the

tax. Compute interest on any underpayment

Amended Returns

date of death in the applicable box and enter

of estimated income tax on Form D-422,

the name of the deceased and the address of

U n d e r p a y m e n t o f E s t i m a t e d T a x b y

the executor, administrator, or court-appointed

You may amend your return by filing Form

Individuals. Interest is not due if each payment

representative. The executor, administrator, or

D-400X, Amended North Carolina Individual

equals 25 percent of the lesser of 90 percent (66

court-appointed representative should fill in the

Income Tax Return for 2013. Amended returns

2/3 percent for farmers and fishermen) of the tax

circle above the deceased taxpayer information

on which you owe additional tax are required to

due on your current year’s return or 100 percent

on Page 1 and sign the return. When filing a

be filed and the tax paid within three years after

of the tax due on your previous year’s return.

separate return for a decedent who was married

the date on which the original return was filed or

If interest is applicable, add the interest to the

at the time of death, enter the date of death, the

within three years from the date required by law

tax due, and include the full payment with your

name of the deceased, and the address of the

for filing the return, whichever is later.

return. If a refund is due, subtract the amount

surviving spouse. The surviving spouse should

of the interest from the refund.

If changes are made to your federal return by

sign the return. In either case, be sure to enter

the Internal Revenue Service, you must report the

the date of death in the space provided.

United States Armed

changes to the State by filing an amended return

If you are a court-appointed representative,

within six months from the date you receive the

Forces Pay

attach to the return a copy of the certificate

report from the Internal Revenue Service. If you do

not amend your State return to reflect the federal

that shows your appointment.

A refund due

on a return filed for a deceased taxpayer by a

changes and the Department of Revenue receives

If you are serving in the United States Armed

the report from the Internal Revenue Service, an

person other than a surviving spouse, executor,

Forces and your legal residence is North

Instructions For Form D-400 - North Carolina Individual Income Tax - 2013 Page 6

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