Listed below is income that should be added to your North Carolina return:
Interest Income From Other State Obligations
North Carolina does not tax interest income from notes, bonds, and other state obligations and political subdivisions from North Carolina; however, North Carolina does tax all interest income from other state obligations even if it is not taxable by the Federal government. This includes exempt interest dividends received from regulated investment companies (mutual funds) to the extent such dividends do not represent interest from obligations of North Carolina or its political subdivisions.
Section 179 Expense Adjustment
You are allowed to deduct an amount that’s equal to 20% of the section 179 expense deduction that was added to the federal AGI.
Adjustment For Bonus Depreciation
You are allowed to deduct an amount that’s equal to 20% of the bonus depreciation deduction that was added to your federal AGI.
Deferred Gains Reinvested into an Opportunity Fund
NC did not conform to the temporary deferral of income for certain gains timely invested into an Opportunity Fund and this should be added as an addition to income on the NC return.
To enter these additions on your North Carolina return, follow the steps below:
- State Section
- Additions to Income
For information regarding North Carolina's other additions to income, please click here.