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Most Additions will be calculated automatically for you by our software. The following includes the other additions that need to be entered here to be added to your federal taxable income. If any of these items were not included in federal taxable income, enter the amount here. For more information see the knowledge base for each type, or the North Carolina Department of Revenue.
1. Lump Sum Distributions 2. Amounts deducted on your federal return as net operating losses brought forward from tax years beginning prior to January 1, 1989, must be added to your federal taxable income. For tax years prior to January 1, 1989, State law allowed a net operating economic loss to be carried forward to subsequent years. A net economic loss was compuuted differently from the federal net operating loss. If you carried over a net operating loss from another year to the 2004 return, an addition is required for the amount of net operating loss carried to the 2004 year that is not absorbed and will be carried forward in subsequent years. 3. If you recovered all or any of your contributions to an annuity for State income tax purposes for taxable years beginning prior to January 1, 1989, but such amount was not recovered for federal purposes, you must include a ratable portion of the difference in the cost previously recovered for NC purposes and the amount previously recovered for federal purposes on the NC return for each tax year beginning on or after January 1, 1989. Compute as follows: amount recovered on state return - amount recovered on federal return divided by remaining years life expectancy. The difference in cost recovered should reflect only the cost recovered during period of residence in NC.
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