North Carolina 2012 Individual Tax Return Forms
Individual Income Tax Return and Form D-400TC, Individual Tax Credits (You must include Form D-400TC if you claim any tax credits.) [web fill-in, instructions]
Individual Income Tax Return (no tax credits) [web fill-in, instructions]
D-401 Individual Income Tax Instructions for Form D-400
2012 INDIVIDUAL INCOME TAX LAW CHANGES
G.S. 105-134.1 – Definitions of Adjusted Gross Income and Taxable Income: This subsection was rewritten to add the definition of adjusted gross income as defined in section 62 of the Code and to remove the definition for taxable income.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(a), S.L. 11-145.)
G.S. 105-134.4 – Definition of Taxable Year: Repealed.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(d), S.L. 11-145.)
G.S. 105-134.5 – North Carolina Taxable Income Defined: The term “North Carolina taxable income” means adjusted gross income as modified in G.S. 105-134.6.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(b), S.L. 11-145.)
G.S. 105-134.5(b) and (c) – North Carolina Taxable Income Defined for Nonresidents and Part-year residents: This subsection was amended to remove the word “adjusted” when referring to the calculation of the numerator and denominator. As a result of this technical change, nonresidents and part-year residents will continue to use gross income, as modified, rather than adjusted gross income, as modified, in determining the North Carolina proration percentage.
(Effective June 26, 2012; SB 826, s. 1.2, S.L. 12-79.)
G.S. 105-134.5(e) – Tax Year Defined: This new subsection was added to replace the former definition of taxable year as defined under G.S. 105-134.4, which has been repealed.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(b), S.L. 11-145.)
G.S. 105-134.6 – Modifications to Adjusted Gross Income: This section was rewritten to reflect the change to make adjusted gross income the starting point for the computation of North Carolina taxable income. In addition, section title “Adjustments to taxable income” was changed to “Modifications to adjusted gross income.”
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
G.S. 105-134.6(a1) – Personal Exemption: House Bill 200 created this new subsection and defines allowable personal exemption amounts based on filing status and adjusted gross income. Senate Bill 267 rewrote this subsection to clarify that the taxpayer is allowed the same personal exemptions allowed under section 151 of the Code for the taxable year.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
(Effective for taxable years beginning on or after January 1, 2012; SB 267, s. 12.(b), S.L. 11-330.)
G.S. 105-134.6(a2) – Deduction Amount: House Bill 200 created this new subsection that defines the standard deduction available to taxpayers based on filing status. Senate Bill 267 rewrote this subsection to clarify that in the case of a married couple filing separate returns, a taxpayer may not deduct the standard deduction amount if the taxpayer‟s spouse claims itemized deductions for State purposes. SB 267 also allows an additional State deduction amount for taxpayers who are entitled to an additional deduction amount under section 63(f) of the Code for the aged or blind.
This subsection was amended by the 2012 session of the General Assembly to limit the North Carolina standard deduction to the lesser of the amount shown in the table contained in G.S. 105-134.6(a2) or the amount allowed under the Code. As a result of this technical change, an individual who is claimed as a dependent on another individual‟s return must limit the North Carolina standard deduction the same as required under the Code for federal purposes. That individual‟s North Carolina standard deduction is the lesser of the amount limited under the Code or the amount shown in the table contained in G.S. 105-134.6(a2). Another result of this technical change is that there is no North Carolina standard deduction allowed to a taxpayer who is not entitled to a standard deduction under the Code for federal purposes, such as the taxpayer who is a nonresident alien or the taxpayer who files a short-year return
because of a change in accounting period.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
(Effective for taxable years beginning on or after January 1, 2012; SB 267, s. 12.(b), S.L. 11-330.)
(Effective June 26, 2012; SB 826, s. 1.3, S.L. 12-79.)
G.S. 105-134.6(b) – Other Deductions: This section was rewritten. Subsection title “Deductions” was changed to “Other Deductions”. Deductions are allowed in this subsection to the extent those items are included in the taxpayer‟s adjusted gross income.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
G.S. 105-134.6(b)(22) – Business Income Deduction: House Bill 200 created this new subdivision to allow a deduction of $50,000 for net business income the taxpayer receives during the taxable year. The term “business income” does not include income that is considered passive income under the Code. Senate Bill 267 rewrote this subdivision to clarify that an amount not to exceed $50,000 of net business income the taxpayer receives during the taxable year may be deducted. However, in the case of a married couple filing a joint return where both spouses receive or incur net business income, the maximum amount applies separately to each spouse‟s net business income, not to exceed a total of $100,000.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
(Effective for taxable years beginning on or after January 1, 2012; SB 267, s. 12.(c), S.L. 11-330.)
G.S. 105-134.6(c) – Additions: This section was rewritten to reflect the change to make adjusted gross income the starting point for the computation of North Carolina taxable income.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
G.S. 105-134.6(c)(3) – Addition for Taxes Claimed: This subsection was rewritten to require an addition for qualified motor vehicle taxes claimed as an itemized deduction.
(Effective for taxable years beginning on or after January 1, 2012; SB 267, s. 12(d), S.L. 11-330.)
G.S. 105-134.6(c)(4) – Additional Standard Deduction: Repealed. The change to adjusted gross income makes this statute irrelevant.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)
G.S. 105-134.6(c)(4a) – Personal Exemption Adjustment: Repealed. The change to adjusted gross income makes this statute irrelevant.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c), S.L. 11-145.)