North Carolina Basic Instructions
Credit for Charitable Contributions by Nonitemizers
If you claimed the standard deduction on your federal return, you may claim a tax credit for charitable contributions. The allowable credit equals 7 persent of the amount by which your chartiable contributions for the taxable year exceed 2 percent of you federal adjusted gross income. Enter the total amount of the charitable contribution. TaxEngine will automatically calculate the credit amount.
$3 North Carolina Public Campaign Financing Fund
The state of North Carolina requires that the taxpayer and spouse designate whether they agree or do not agree with the NC Public Campaign Fund. The 2002 North Carolina General Assembly enacted Senate Bill 1054, which gives an individual the opportunity to allocate $3.00 of the individual’s income tax liability to the North Carolina Public Campaign Financing Fund. According to a new law states in G.S. 105-159.2(b) that “No software package used in preparing North Carolina individual income tax returns may default to an agreement or objection.” If neither of these boxes are checked, it will generate an audit indicating that neither choice has been made.
The taxpayer or spouse may designate $3 of the tax already paid to the North Carolina Public Campaign Financing Fund. (Married couples filing a joint return may each make a spousal designation if their income tax liability is $6 or more.) The fund provides campaign money to nonpartisan candidates for the North Carolina Supreme Court and Court of Appeals who voluntarily accept strict campaign spending and fund-raising limits. The fund also helps finance educational materials about voter registration, the role of appellate courts, and the candidates seeking election as appellate judges in North Carolina. Regardless of whether or not this box is checked, the tax will not increase, or will any refund the taxpayer is entitled to be reduced. Check the appropriate box if the taxpayer or spouse wishes to contribute.
$1 Political Fund Contribution
The taxpayer or spouse may designate $1 of the tax already paid for use by the Democratic or Republican Party. (Married couples filing a joint return may each make a spousal designation if their income tax liability is $2 or more.) If they do not wish to specify a party but wish to designate $1, choose ‘Unspecified’ from the drop-down combo box, and the amount will be distributed on a pro rata basis according to party voter registration. No political party with less than 1% of the total number of registered voters in the state will receive any of the designated funds. Choose from the drop-down combo box the party that the taxpayer or spouse wishes to contribute to.
Part-Year Resident
You are considered a part-year resident of North Carolina if, during 2007, you moved your permanent home into or out of North Carolina. You must pay North Carolina income tax on income you earned, received or accrued while living in North Carolina. If you live in North Carolina for more than 183 days of a tax year, you are considered a resident for income tax purposes in the absence of factual proof of your residence in another state. You may be considered a resident of North Carolina even if you were absent for more than 183 days.
Nonresident Resident
If you are a resident of another state and worked in North Carolina during 2007, you are required to file a North Carolina income tax return and are required to pay North Carolina income tax on salary wages and other employee compensation for work performed in North Carolina.
If you are serving in the United States Armed Forces and your legal residence is North Carolina, you are liable for North Carolina income tax and North Carollina income tax should be withheld from your pay regardless of where you may be station. If you are a loegal resident of another state stationed in North Carolina on miliary order, you are not liable for North Carolina income tax on your military pay, but other income earned in North Carolina is subject ot North Carolina income tax.