NC Deductions

If any of these items were included in federal taxable income, enter the amount here. For more information see the knowledge base or contact the NC Department of Revenue

Interest Income from U.S. and N.C. Obligations
Social Security and Railroad Retirement Benefits
Federal Mortgage Interest Tax Credit
Severance Pay
Retirement Benefits Deduction
NC Inheritence or Estate Tax paid that was attributable to an item of income in respect to a decedent.

Charitable Contributions
If you claimed the standard deduction on your federal return, you may claim a credit on your North Carolina return for charitable contributions you made during the year to a qualified organization. This credit will either increase your refund or decrease the tax you owe.

The credit cannot exceed your income tax liability for the year and you cannot carry over any unused credit to another year. Remember, you can only claim this credit if you claimed the standard deduction on your federal return. The allowable credit equals 7 percent of the amount by which yor charitable contributions for the taxable year exceed 2 percent of your federal adjusted gross income.

The credit may not be claimed for contributions for which the credit for certain real property donations or the credit for gleaned crops is claimed.

A nonresident or part-year resident may claim a prorated credit equal to the percentage of income that is subject to North Carolina tax.

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