Residents must file if they are:
- Single and income exceeds $8,750
- Married Filing Jointly and income exceeds $17,500
- Married Filing Separately if income exceeds —if spouse claims standard deduction $8,750 Married Filing Separately if income exceeds—if spouse claims itemized deductions $0
- Head Of Household if income exceeds $14,000
- Qualified Widow/Widower if income exceeds $17,500
There are no special considerations for those over 65 or children/dependents .
Part-year and nonresidents must file a return if they earned any income while a resident or NC sourced income while a nonresident.
Taxpayer must file the same status as on a federal return. If one married spouse is considered a nonresident and that spouse did not receive any North Carolina income there are two options for filing. The first is they may file a joint NC tax return. Or the spouse with the NC income may file a separate NC return. Taxpayers who choose to file a separate NC return must attach a separate federal return or a schedule showing the calculation of separate federal taxable income to the NC return.Return Due Dates
Returns are due on April 15th.
Business Annual Reports are due April 15thExtension Information
Taxpayers can file D-410 to request an extension. The extension will allow the taxpayer to file a return until October 15th.
Businesses also can extend their franchise tax due date by filing form CD-419.
Each year NC requires you to file an annual report no later than April 15th. New LLC’s will file the report the following year after filing the LLC.
Starting 2017 C-Corps pay a 3% business tax, and will go down to 2.5% in 2019
The franchise tax rate is .0015% with a minimum $200.
Effective in 2019 for the 2018 tax year, S-Corps franchise tax is a flat rate of $200 up to 1 million dollars in business income, after one million dollars in income it is tax at a rate of $1.50 per $1,000 of income.
LLC’s that chose to be taxed as a corporation for federal tax returns can receive a credit for the NC corporate franchise tax minus the LLC filing fee.
Effective 2018 corporate annual reports must be filed with the Secretary of State instead of the North Carolina Department of Revenue Service.
Business owners must list the business personal property and the value of the item at purchase and year that it was purchased. The report and payment are due in January but can be extended no later than April 15th.Real Estate
As in most states, North Carolina taxes short-term (vacation) rental income like it does sales tax in most cases.
Transfer or excise tax is usually paid by the seller at a rate of .002%. Some counties also charge a land transfer of tax of up to 1% of the sales price.