Credits

Miscellaneous Credits
State law provides for the following miscellaneous tax credits: Property Taxes on Farm Machinery, Donating Real Property for Certain Public and Conservation Purposes, Construction of Dwelling Units for Handicapped Persons, Purchase of Conservation Tillage Equipment Gleaned Crops, Rehabilitating Income-Producing and Nonincome-Producing Historic Structures, Poultry Composting Facility.

**Please Note** You must complete and mail a NC-RA within 48 hours of acceptence of your tax return if the instuctions for these credits require documentation. We will provide you with this form in the forms section for your convenience. The credit will not be allowed without the documentation.

For additional information contact the NC Department of Revenue

Long Term Care Insurance
The credit for Long-Term Care Insurance is effective beginning for the 1999 tax year. You may be entitled to an income tax credit if you paid premiums on a qualified long-term care insurance contract that provides insurance coverage for yourself, your spouse or a dependent for whom you were allowed to claim a personal exemption on your federal return. Qualified long-term care insurance contracts are defined in Section 7702B of the Internal Revenue Code. Medical insurance premiums that you pay for general health care, hospitalizations, or disability insurance do not qualify as premiums paid for a long-term care insurance contract.

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.

You are not eligible for the credit if you claimed the premiums as an itemized medical expense on your federal return. Federal law limits the deductible long-term care premiums based on an individual's age. Those premiums that are not deductible on your federal return because of the age limitations may be used in calculating the credit.

Be sure to not include any premiums that were deducted from or not included in your federal adjusted gross income. For example, do not include premiums that were paid through a cafeteria plan or a flexible spending arrangement through your employer. The credit may not exceed your tax for the year and any unused portion of the credit may not be carried over to subsequent years.

Please note that the credit is figured differently for nonresident or part-year residents.

Tax Credits Carried From Previous Year Enter any credit that can be carried over from a previous year.

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