What deductions and adjustments were updated?
- The N.C. standard deduction for each filing status is increased for tax year 2019. The New Deduction amounts are: $10,750 for Single/Married filing separately, $21,500 for Married filing jointly/qualifying widower, $16,125 for Head of Household.
- In 2020 N.C. enacted legislation to provide eligible individuals an additional $335 grant. If you included this grant when determining your Federal AGI, a subtraction is allowed from your N.C. income.
- Charitable contribution limitation - N.C. does not allow deductions of charitable contributions in excess of 60% AGI. If claiming a greater amount for Federal AGI purposes, this must be adjusted on the N.C. return.
What was the change in tax rate?
- For tax years 2019 and forward the tax rate has been reduced to 5.25%. No change for 2020.