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

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

Page 19

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

premiums that you paid through a cafeteria plan or flexible spending arrangement offered by your employer. .............. 1. ____________

2. Multiply Line 1 by 15% (.15). Full-year residents enter the result here and on Line 5.

(Do not enter more than $350 per contract) ..................................................................................................................... 2. ____________

3. 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 3 and 4, and enter the amount from Line 2 on Line 5) ..................................................................................3. _____________

4. Multiply the amount on Line 2 by the decimal amount from Line 3. Enter the result here and on Line 5 ....................... 4. ____________

5. Credit for long-term care insurance premiums (Enter on Form D-400TC, Line 21) ......................................................... 5. ____________

Adoption Tax Credit Worksheet

Credit for Adoption

Expenses

____________

1. Enter your federal adoption credit from Federal Form 8839, Line 12 ......

2. Multiply Line 1 by 50% (.50) and enter the result

You may claim an adoption tax credit on your

(Full year residents - enter this amount here and on Line 5) ...............

____________

State return of 50% of the allowable adoption tax

credit claimed on your federal return. A part-year

3. Part-year residents and nonresidents - enter the decimal amount

resident or nonresident may claim a prorated

from Line 16 of Form D-400. (If Line 16 is more than 1.0000, skip

credit based on the percentage of income that

Lines 3 and 4, and enter the amount from Line 2 on Line 5) ...................

____________

is subject to North Carolina tax. Any unused

4. Multiply the amount on Line 2 by the decimal amount

portion of this credit may be carried forward for

from Line . Enter the result here and on Line ....................................

____________

the next succeeding five years. Complete the

Adoption Tax Credit Worksheet to determine

____________

5. Credit for Adoption (Enter on Form D-400TC, Line 22) ...........................

the allowable credit.

Credit for Children With Disabilities Who Require Special Education

Certain taxpayers are allowed a tax credit of up to $3,000 per semester for tuition paid for an eligible dependent child. To determine eligibility for the

credit, please refer to our website

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% 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 credit, you must file Form D-499, Application for Tax Credit for Qualified Business Investments, with the Secretary of Revenue. The

application should be filed on or before April 15 and no later than October 15 of the year following the calendar year in which the investment was made. An

application filed after October 15 will not be accepted. 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 24. You must attach a copy of the qualified business tax credit approval letter from the Department of

Revenue to verify the credit claimed on the return.

Credit for Disabled Taxpayer, Dependent, or Spouse

If you claimed an income tax credit on your federal tax return for being permanently and totally disabled, you are entitled to a tax credit on your North

Carolina return equal to one-third (1/3) of the amount of the federal tax credit. Although the federal tax credit is also allowed for being age 65 or older, no

portion of the tax credit is allowed on the North Carolina return for being age 65 or older.

You may also 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 return certifying that the dependent

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.