The Payments section of your North Carolina return is used to enter certain payments, credits, and contributions that may affect your state tax refund or balance due. North Carolina withholding from Forms W-2, W-2G, and 1099 is automatically transferred into your return and does not need to be entered again.
Note: Complete only the items that apply to your tax situation.
Program Pathway
- State
- Select the 3 dots to the right for Edit
- Payments
Taxes Paid Through a Partnership or S Corporation as a Nonresident
Enter information in the corresponding section if North Carolina tax was withheld and paid on your behalf because you were either:
- A nonresident partner in a partnership, or
- A nonresident shareholder in an S corporation.
If applicable, enter the information from your North Carolina Schedule K-1 or other documentation provided by the partnership or S corporation. These amounts may be claimed as a payment on your North Carolina return and can help reduce the tax you owe or increase your refund.
Important: Enter the withholding exactly as shown on your North Carolina Schedule K-1 or supporting documentation. If you received withholding from more than one entity, enter each payment separately.
Apply Your Refund to Next Year's Return
You may choose to apply all or part of your current-year North Carolina refund to your next year's North Carolina income tax return.
Enter the amount you would like applied to next year's taxes in the field provided.
Keep in mind:
- You can apply any portion of your expected refund.
- The amount entered cannot exceed your available refund.
- If an amount has already been entered elsewhere in the return, it may automatically appear here.
Important: If your return reflects a balance due, or if the amount entered exceeds your available refund, the amount will not be submitted to the state. Verify your refund before entering an amount in this field
Extension Payments
If you filed an extension of time to file your North Carolina return and made a payment with that extension, enter the amount paid in the Extension Payment section.
Only enter payments that were actually submitted with your extension request. North Carolina extensions provide additional time to file; however, tax owed is generally still due by the original filing deadline. Unpaid tax may be subject to interest and penalties.
Program Pathway
State Section > Payments > Extension Payment
Penalties and Interest
Select Begin next to Penalties and Interest if you need to report applicable penalty or interest amounts. Most taxpayers will not need to complete this section unless required by their filing circumstances.
Penalties or interest may apply if:
- You did not pay enough tax by the original due date.
- You filed your return after the filing deadline and were not eligible for an extension.
- You received an extension to file but did not pay the full amount due by the original due date.
- Required estimated tax payments were not made or were underpaid during the year.
- The North Carolina Department of Revenue assessed additional tax, penalties, or interest on a prior return.
Estimated Tax Underpayment: Taxpayers who do not make sufficient estimated tax payments throughout the year may be subject to an underpayment penalty. See Form D-422, Underpayment of Estimated Tax by Individuals, for additional information regarding penalty calculations and exceptions.
NC Donations
North Carolina allows taxpayers to contribute a portion of their refund to certain state programs and funds. Any donation entered reduces the amount of your refund by the contribution amount.
Available funds may include:
- NC Education Endowment Fund
- NC Nongame and Endangered Wildlife Fund
- NC Breast and Cervical Cancer Control Program
Note: The list of available contribution funds may change from year to year. Refer to the current North Carolina return instructions for the complete list of available donation options.
Additional Information
Review all entries carefully before selecting Continue. Incorrect payment amounts may affect the refund or balance due calculated on your North Carolina return.
If you are unsure whether a payment belongs in this section, refer to your tax documents or the current 2025 D-401 Individual Income Tax Instructions published by the North Carolina Department of Revenue.