reglab/statecodes huggingface dataset:
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3700 - ESTATES AND TRUSTS › Section 06B .3724 - ALLOCATION OF INCOME ATTRIBUTABLE TO NONRESIDENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) If an estate or trust has income
											  from sources outside of North Carolina and if any of the beneficiaries are nonresidents of North Carolina,
											  the portion of federal taxable income of the Fiduciary that is subject to North Carolina tax must be
											  determined. If there are no nonresident beneficiaries or if there is no gross income from dividends,
											  interest, other intangibles or from sources outside North Carolina for the benefit of a nonresident
											  beneficiary, the total income of the estate or trust is taxable to the fiduciary.
(b) The determination of the amount of undistributed income from intangible
											  property which is for the benefit of a resident is based on the beneficiary's state of residence on the last
											  day of the taxable year of the trust. In the case of both resident and nonresident beneficiaries, the
											  determination of the amount of undistributed income from intangible property which is for the benefit of a
											  resident is made on the basis that the resident beneficiary's interest for the taxable year relates to the
											  interest of both resident and nonresident income beneficiaries for the taxable year.
Authority
													 G.S.
													 105-153.4;
													 105-160.2;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. February 1, 2005; June 1, 1993; October 1, 1991;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3700 - ESTATES AND TRUSTS › Section 06B .3725 - REPEALED - ADMINISTRATION EXPENSES

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-160.2;
													 105-262;
Eff. June 1, 1990;
Repealed
													 Eff. August 1, 1998.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3800 - MISCELLANEOUS RULES › Section 06B .3801-.3803

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 8-45.3;
													 105-141(a);
													 105-141.1;
													 105-142(a);
													 105-144(a);
													 105-144(c);
105-144.3; 105-147(1);
													 105-147(1)h; 105-147(2); 105-147(7); 105-147(9)a; 105-147(10);
105-147(17); 105-147(19);
													 105-147(24); 105-147(28); 105-148(1); 105-148(2); 105-148(8);
105-159.1; 105-163.16(c);
													 105-163.16(e); 105-251; 105-262; 147-77;
Eff. February 1, 1976;
Amended Eff. November
													 1, 1988; February 1, 1988; April 1, 1987; February 1, 1987;
Repealed Eff. June 1,
													 1990.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3800 - MISCELLANEOUS RULES › Section 06B .3804 - DEPOSIT OF PAYMENT

Current through Register Vol. 39, No. 2, July 15, 2024
When a payment is received by the Department of Revenue for less
													 than the correct tax, penalty, and interest due and the payment includes the statement, "paid in full" or
													 other similar statements, the payment will be deposited as required by
													 G.S.
													 147-77.
Authority
													 G.S.
													 39-13.6;
													 105-154;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. June 1, 1993; October 1, 1991; February 1, 1991;
Readopted Eff. May 1,
													 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3900 - NONRESIDENTS AND PART YEAR RESIDENTS › Section 06B .3902 - NONRESIDENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The term
											  "nonresident" includes an individual:
(1) Who resides in North Carolina for
											  a temporary or transitory purpose and is, in fact, a domiciliary resident of another state or country;
											  or
(2) Who does not reside in North Carolina but has income from
											  sources within North Carolina and is, in fact, a domiciliary resident of another state or country.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3900 - NONRESIDENTS AND PART YEAR RESIDENTS › Section 06B .3903 - PART YEAR RESIDENT

Current through Register Vol. 39, No. 2, July 15, 2024
An individual who moves his domicile into or out of North Carolina
													 during the tax year, is a part-year resident.
Authority
													 G.S.
													 105-153.4;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. June 1, 1993;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3900 - NONRESIDENTS AND PART YEAR RESIDENTS › Section 06B .3904 - TAXABLE INCOME OF NONRESIDENTS AND PART-YEAR RESIDENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Nonresidents and part-year
											  residents shall prorate their adjusted gross income, adjusted as required under
											  G.S.
											  105-153.5 and
											  G.S.
											  105-153.6, to determine the portion that is subject to North Carolina
											  tax.
(b) An individual who files a joint federal income tax
											  return with his or her spouse and is not required to file a joint North Carolina income tax return because
											  the spouse is a nonresident and had no North Carolina taxable income, may file the State return as either
											  married filing jointly or married filing separately. However, once the individual files a joint North
											  Carolina income tax return, the individual shall not amend the return to file as married filing separately
											  for that tax year after the due date of the return. An individual who files a joint federal income tax return
											  and chooses to file a separate State return shall calculate the individual's adjusted gross income on a
											  federal income tax form as a married person filing a separate federal income tax return and attach it to the
											  individual's North Carolina return to show how the separate adjusted gross income was determined. The
											  individual filing the separate federal income tax return shall report only the individual's income and
											  deductions. In lieu of making the calculation on a federal form, an individual may submit a schedule showing
											  the computation of the individual's separate adjusted gross income. An individual who submits a schedule
											  shall attach a copy of pages one and two of the individual's joint federal return if the federal return
											  reflects an address outside North Carolina.
(c) An individual who
											  has income from sources within another state or country while a resident of North Carolina and is subject to
											  tax on the income by the other state or country may be eligible to claim a tax credit for tax paid to another
											  state or country under G.S.
											  105-153.9.
(d) A nonresident is
											  not entitled to the tax credit for tax paid to another state or country.
Authority
													 G.S.
													 105-153.4;
													 105-153.8;
													 105-153.9;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. September 1, 2008; July 1, 1999; August 1, 1998; June 1, 1993;
Readopted Eff. May 1,
													 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3900 - NONRESIDENTS AND PART YEAR RESIDENTS › Section 06B .3905 - NONRESIDENT MEMBERS OF PROFESSIONAL ATHLETIC TEAMS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Determination of North Carolina
											  source income.
(1) To determine the portion of his or her total
											  compensation for services rendered as a member of a professional athletic team during the taxable year that
											  shall be considered North Carolina source income and shall be included in the numerator of the fraction
											  determined under G.S.
											  105-153.4(b), the nonresident member of a professional
											  athletic team shall multiply his or her total compensation for services rendered as a member of a
											  professional athletic team during the taxable year by a fraction, the numerator of which is the number of
											  duty days spent in North Carolina rendering services for the team in any manner during the taxable year. The
											  denominator shall be the total number of duty days spent both within and outside North Carolina during the
											  taxable year.
(2) Travel days that do not involve any of the
											  activities set forth in Subparagraph (b)(3) of this Rule, or other similar team activity, are not considered
											  duty days spent in North Carolina and compensation for those days shall not be included in the numerator of
											  the fraction determined under G.S.
											  105-153.4(b). However, the travel days shall be considered
											  duty days spent within and outside North Carolina and compensation for those days is included in the
											  denominator of the fraction determined under
											  G.S.
											  105-153.4(b).
(3) Where the method of apportioning and allocating the compensation
											  provided in this Rule produces substantially incorrect results, the Secretary of Revenue may require the
											  member of a professional athletic team to apportion and allocate the compensation under another method
											  prescribed by the Secretary as long as the prescribed method better reflects the compensation received for
											  services rendered in North Carolina. A nonresident member of a professional athletic team may request an
											  alternative method to apportion and allocate the compensation, demonstrating that the method provided under
											  this Rule produces substantially incorrect results. If the Secretary approves the alternative method, a copy
											  of the Secretary's written approval shall be included with the North Carolina income tax return filed by the
											  nonresident member.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3900 - NONRESIDENTS AND PART YEAR RESIDENTS › Section 06B .3906 - PURCHASE OF REAL PROPERTY LOCATED IN NORTH CAROLINA FROM A NONRESIDENT

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Every
											  individual, fiduciary, partnership, corporation, or unit of government buying real property located in North
											  Carolina from a nonresident individual, partnership, estate, or trust shall complete Form NC-1099NRS, Report
											  of Sale of Real Property by Nonresidents, to report the following:
(1) the
											  seller's name, address, and social security number, or federal employer identification number;
(2) the location of the property;
(3) the date of closing; and
(4) the gross sales price of the real property and its associated tangible
											  personal property.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4001-.4002

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-131;
													 105-131.1;
													 105-131.2;
													 105-134.6(a);
													 105-262;
Eff. June 1, 1990;
Repealed
													 Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4003 - NONRESIDENT SHAREHOLDERS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A nonresident shareholder of an S corporation
											  shall take into account only his or her share of the S corporation's income attributable to North Carolina in
											  the numerator of the fraction in determining that portion of adjusted gross income that is taxable to North
											  Carolina. If an S corporation does business in North Carolina and one or more other states, the income
											  attributable to North Carolina shall be determined under
											  G.S.
											  105-130.4.
(b) A nonresident
											  shareholder in an S corporation may claim credit on the shareholder's North Carolina individual income tax
											  return for the tax paid on his or her behalf by the S corporation to North Carolina on his or her share of
											  the S corporation income.
(c) A nonresident shareholder in an S
											  corporation shall not be required to file a North Carolina individual income tax return when the only income
											  from North Carolina sources is his or her share of S corporation income and the S corporation pays the tax on
											  his or her behalf.
Authority
													 G.S.
													 105-130.4;
													 105-131.1;
													 105-131.5;
													 105-131.7;
													 105-153.4(d);
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. June 1, 1993; October 1, 1991;
Readopted Eff. May 1, 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4004 - TAX CREDITS

Current through Register Vol. 39, No. 2, July 15, 2024
If part of the S corporation's income is earned within and taxed by
													 another state, either to the individual or to the corporation, a resident shareholder is entitled to a tax
													 credit on the individual or the estates and trusts income tax return for the share of the tax paid to the
													 other state. A shareholder claiming the tax credit must attach a schedule to the income tax return reflecting
													 the total amount of tax paid to the State by the S corporation, and explaining how the shareholder's pro rata
													 share of the tax was determined. Nonresident shareholders are not allowed credit for tax paid to another
													 state.
Authority
													 G.S.
													 105-131.8;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. July 1, 1999; June 1, 1993;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4005 - BASIS IN STOCK

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Due to different tax treatment of an S
											  corporation's income for State and federal purposes for taxable years beginning before January 1, 1989, a
											  shareholder's basis in the stock of an S corporation for State tax purposes may be different than for federal
											  tax purposes; thereby causing adjustments in determining North Carolina taxable income upon receipt by the
											  shareholder of distributions from the S corporation and upon disposition of the S corporation
											  stock.
(b) The initial basis of the stock in an S corporation to
											  a nonresident of North Carolina is zero, and the nonresident shareholder shall not be taxed on distributions
											  from the corporation and recognizes no income or loss upon disposition of the stock. A nonresident
											  shareholder's basis in the S corporation stock shall be adjusted for his or her pro rata share of the income
											  or loss of the corporation.
(c) A resident shareholder's initial
											  basis in the stock of an S corporation shall be determined as of the later of the date the stock is acquired,
											  the effective date of the S corporation election, or the date the shareholder became a resident of North
											  Carolina. A resident shareholder's basis in the stock shall be increased by his or her pro rata share of the
											  corporation's income, subject to the adjustments required under
											  G.S.
											  105-153.5 and
											  G.S.
											  105-153.6, except for income exempt from federal or State income taxes and
											  deductions for depletion in excess of the basis of the property being depleted. The basis shall be decreased
											  by:
(1) distributions to the extent deemed a return of basis;
(2) a pro rata share of the losses of the corporations as adjusted under
											  G.S.
											  105-153.5 and
											  G.S.
											  105-153.6;
(3) nondeductible
											  expenses of the corporation; and
(4) the amount of the
											  shareholder's deduction for depletion of oil and gas wells to the extent the deduction does not exceed the
											  proportionate share of the adjusted basis of that property allocated to the shareholder.
The adjustments to the basis do not apply to tax periods beginning
													 prior to January 1, 1989.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4006 - DISTRIBUTIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A resident
											  shareholder must take into account distributions from an S corporation in computing North Carolina taxable
											  income to the extent the distributions are characterized as dividends or as gains pursuant to Section 1368 of
											  the Internal Revenue Code. Section 1368 of the Code provides that if the S corporation has no accumulated
											  earnings and profits, the amount distributed to a shareholder reduces the adjusted basis in his stock. If the
											  S corporation has earnings and profits, the distribution is applied in the following order:
(1) To the Accumulated Adjustments Account (AAA), which basically includes
											  the income during the period the corporation has been an S corporation reduced by its losses and
											  distributions during that period. The AAA for State income tax purposes does not include the federal AAA for
											  tax years beginning prior to January 1, 1989. The shareholder does not take into account distributions from
											  the AAA in determining taxable income but such distributions reduce the adjusted basis of his
											  stock.
(2) To Earnings and Profits (E and P): An S corporation is
											  not considered to have earnings and profits for State tax purposes for years in which it operates as an S
											  corporation after January 1, 1989. The E and P account basically includes the earnings and profits on hand
											  from the period the corporation was a C corporation; and for State tax purposes, the E and P account also
											  includes the undistributed earnings and profits of the S corporation from tax years beginning before January
											  1, 1989, (the federal AAA that existed on the day North Carolina began to measure the S corporation
											  shareholder's income by reference to the income of the S corporation). The amount distributed to the
											  shareholder from the E and P account is taxed to the shareholder as a dividend. Since the State E and P
											  account includes the federal AAA that existed prior to the change in State law taxing the S corporation
											  income to the shareholders, State taxable income must be increased for any distributions from the federal AAA
											  that existed prior to the law change.
(3) To the basis of the
											  shareholder's stock: Any excess over the shareholder's basis is taxed as a capital gain.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4007 - REPEALED - FISCAL YEAR S CORPORATION

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-131.1(b);
													 105-262;
Eff. June 1, 1990;
Repealed
													 Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4000 - S CORPORATION › Section 06B .4008 - REPEALED - LOSSES

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-131.3;
													 105-131.4;
													 105-262;
Eff. February 1, 1991;
Repealed Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4100 - TAXABLE STATUS OF DISTRIBUTIONS FROM REGULATED INVESTMENT COMPANIES › Section 06B .4101 - GENERAL

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Exempt interest
											  dividends paid by a regulated investment company ("mutual fund") to a shareholder and not included in the
											  shareholder's federal adjusted gross income shall be added to adjusted gross income to the extent it
											  represents interest on obligations of states, other than North Carolina, and their political
											  subdivisions.
(b) The total distribution designated as exempt
											  interest dividends by a regulated investment company ("mutual fund") shall be added to adjusted gross income
											  in computing the shareholder's North Carolina taxable income, unless the regulated investment company
											  provides a statement to the shareholder that designates the portion of the exempt interest dividends that
											  represents interest from obligations of the State of North Carolina or its political subdivisions or the
											  United States or its possessions.
Authority
													 G.S.
													 105-153.4;
													 105-153.5(c)(1);
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. June 1, 1993;
Readopted Eff. May 1, 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4100 - TAXABLE STATUS OF DISTRIBUTIONS FROM REGULATED INVESTMENT COMPANIES › Section 06B .4102 - REPEALED - EXEMPT INTEREST DIVIDENDS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-153.5(c);
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. October 1, 1991;
Repealed Eff. May 1, 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4100 - TAXABLE STATUS OF DISTRIBUTIONS FROM REGULATED INVESTMENT COMPANIES › Section 06B .4103 - ORDINARY DIVIDENDS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Interest received in the form of dividends
											  from regulated investment companies shall be deductible from an individual's adjusted gross income to the
											  extent the distributions represent interest on direct obligations of the United States Government. Interest
											  earned on obligations that are merely backed or guaranteed by the United States Government shall not qualify
											  for the deduction. Further, this deduction shall not apply to distributions that represent gain from the sale
											  or other disposition of the securities nor to interest paid in connection with repurchase agreements issued
											  by banks and savings and loan associations.
(b) The taxpayer may
											  not deduct mutual fund dividends on the basis of a percentage of investments held by the fund (i.e., a fund
											  has 75 percent of its investments in United States Treasury Notes). The regulated investment company shall
											  furnish the shareholder a statement verifying the amount of interest paid to the shareholder that accrued
											  from direct obligations of the United States Government. The statement to support the deduction shall specify
											  the amount dividended to the shareholder that represents interest on direct obligations of the United States
											  Government.
Authority
													 G.S.
													 105-153.5(b)(1);
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. June 1, 1993; December 1, 1990;
Readopted Eff. May 1,
													 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .4100 - TAXABLE STATUS OF DISTRIBUTIONS FROM REGULATED INVESTMENT COMPANIES › Section 06B .4104-.4105

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-134.6(b)(1);
													 105-134.6(b)(2);
													 105-151.19;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. December 1, 1990;
Repealed Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0101 - REPEALED - GENERAL

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1 through
													 105-163.10;
													 105-163.17 to
													 105-163.24;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. June 1, 1982.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0102 - REPEALED - WITHHOLDING FROM WAGES

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1;
													 105-163.1(3);
													 105-163.1(4);
													 105-163.1(13);
													 105-163.2;
													 105-163.3;
													 105-163.6;
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. June 1, 1990; December 1, 1988; April 1, 1987;
Repealed Eff. June 1,
													 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0103 - REPEALED - INCOME NOT SUBJECT TO WITHHOLDING

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-154;
													 105-163.1(6);
													 105-163.11;
													 105-163.14;
													 105-163.18;105-262;
Eff. February 1,
													 1976;
Amended Eff. June 1, 1990;
Repealed Eff. October 1,
													 1991.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0104 - REPEALED - EXEMPTION CERTIFICATES

Current through Register Vol. 39, No. 2, July 15, 2024
Filed as a Temporary Amendment
													 [(d) and (f)] Eff. November 16, 1981, for a period of 46 days to expire on January 1, 1982;
Authority G.S.
													 105-163.3;
													 105-163.5;
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. January 1, 1989; June 1, 1982; January 1, 1982; April 12, 1981;
Repealed Eff. June 1,
													 1990.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0105-.0106

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1(4);
													 105-163.1(13);
													 105-163.2;
													 105-163.2(h);
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. October 1, 1991; June 1, 1990;
Repealed Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0107 - EMPLOYEES

Current through Register Vol. 39, No. 2, July 15, 2024
To prevent double withholding and to anticipate any tax credits
													 allowable to a North Carolina resident, withholding of North Carolina tax is not required from wages paid to
													 a resident for services performed in another state if that state requires withholding. This relief from
													 double withholding does not relieve the resident of his obligation to file a North Carolina individual income
													 tax return and pay any balance due after tax credit.
All wages received by a nonresident for services performed in this
													 State are subject to withholding of North Carolina income tax. Any relief from double withholding must be
													 granted by his state of residence.
Authority
													 G.S.
													 105-153.8(a);
													 105-163.1(4);
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. June 1, 1993;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0108 - EMPLOYEE EMPLOYER RELATIONSHIP

Current through Register Vol. 39, No. 2, July 15, 2024
Everyone who performs services subject to the will and control of an
													 employer, both as to what shall be done and how it shall be done, is an employee. An employer-employee
													 relationship exists when the person for whom the services are performed has the right to control and direct
													 the individual performing the services. Managers and other supervisory personnel, officers of corporations,
													 and elected public officials are employees. Whether the employer actually controls and directs the manner in
													 which the services are performed does not matter if he has the right to do so, and it does not matter that
													 the employee is called by some other name such as partner, agent, or independent contractor; nor whether the
													 individual works full or part time; nor how the payments are measured, paid, or what they are called.
Lawyers, physicians, contractors, and others who follow an
													 independent trade, business, or profession in which they offer their services to the public, generally are
													 not employees. If an individual is subject to the control and direction of another only as to the results of
													 his work and not as to the methods of accomplishing the results, he is an independent contractor and not an
													 employee.
Authority
													 G.S.
													 105-163.1(4);
													 105-163.1(5);
													 105-262;
Eff. February 1, 1976;
Pursuant to G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0109 - REPEALED - MINISTERS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1A;
													 105-163.2;
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. October 1, 1991; August 1, 1986; February 21, 1979;
Repealed Eff. June 1,
													 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0110 - REPEALED - COMMON CARRIERS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.2;
													 105-262; 49 U.S.C. Sec. 26; Sec. 301A; Sec. 923; Sec.
													 1512;
Eff. February 1, 1976;
Amended Eff. July 1, 1999; November 1, 1994; December 1,
													 1990; November 1, 1988;
Repealed Eff. May 1, 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0111 - REPEALED - FEDERAL EMPLOYEES

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.2;
													 105-163.18;
													 105-163.23;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. February 21, 1979;
Repealed Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0112 - SEAMEN

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The Vessel Worker Tax
											  Fairness Act, 46 U.S.C.
											  11108 prohibits withholding of state income tax from the wages of a seaman
											  on a vessel engaged in foreign, coastwide, intercoastal, interstate, or noncontiguous trade or an individual
											  employed on a fishing vessel or any fish processing vessel. Vessels engaged in other activity do not come
											  under the restriction; however, any seaman who is employed in coastwide trade between ports in this State may
											  have tax withheld if such withholding is pursuant to a voluntary agreement between such seaman and his
											  employer.
(b) With respect to income obtained while:
(1) engaged as a pilot (licensed under section 7101 of Title 46 of the Code
											  or under the laws of a state) on a vessel performing duties in more than one state; or
(2) performing regularly assigned duties as a master, officer or crewman on
											  a vessel operating on the navigable waters of more than one state; an individual is subject to income tax
											  only in the state and political subdivision in which the individual resides.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0113-.0116

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1(6);
													 105-163.2;
													 105-163.4;
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. May 1, 1984; February 21, 1979;
Repealed Eff. June 1,
													 1990.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0117 - SUPPLEMENTAL WAGE PAYMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) If an
											  employer pays supplemental wages separately (or combines them with regular wages in a single payment and
											  specifies the amount of each), the income tax withholding method depends on whether the employer withholds
											  income tax from the employee's regular wages and whether the wages and supplemental wages are paid in a
											  single payment.
(b) If tax has been withheld on the regular wages
											  and the supplemental amount is not paid in a single payment together with regular wages, the employer may
											  treat the supplemental wages as wholly separate from the regular wages and apply the income tax rate for that
											  tax year pursuant to G.S.
											  105-153.7(a) plus one-tenth of one percent to the
											  supplemental wage payment without consideration for allowances claimed on the employee's withholding
											  allowance certificate. Otherwise, the supplemental wages shall be added to the regular wages for the most
											  recent payroll period. The income tax shall be figured as if the regular wages and supplemental wages
											  constitute a single payment. The tax already withheld from the regular wages is subtracted from this
											  amount.
(c) The remaining tax determined under Paragraph (b)
											  shall be withheld from the supplemental wages. If the employer did not withhold income tax from the
											  employee's regular wages, the employer shall add the supplemental wages to the employee's regular wages paid
											  for the current or last preceding payroll period and withhold tax as though the supplemental wages and
											  regular wages were one payment.
(d) Tips shall be treated as
											  supplemental wages. The employer shall withhold the income tax on tips from wages or collect the tax from
											  funds the employee provides. If an employee receives regular wages and reports tips, the employer shall
											  figure income tax as if the tips were supplemental wages. If the employer has not withheld income tax from
											  the regular wages, the employer shall add the tips to the regular wages and withhold income tax on the total.
											  If the employer withheld income tax from the regular wages, the employer shall withhold on the tips as
											  explained in Paragraphs (b) and (c).
Authority
													 G.S.
													 105-153.7;
													 105-163.1(13);
													 105-163.2;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. June 1, 1990;
Readopted Eff. May 1, 2016;
Amended Eff. August 1,
													 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0118 - REPEALED - SICK PAY

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1(4);
													 105-163.1(5);
													 105-163.1(6);
													 105-163.2;
													 105-163.18;
105-262;
Eff. February 1,
													 1976;
Repealed Eff. June 1, 1990.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0119 - WAGE AND TAX STATEMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
To meet the requirements of
													 G.S.
													 105-163.7, an employer shall use the six-part Federal Form W-2 or any other
													 alternate forms which have been designed for his payroll equipment if they provide the same information and
													 the same number of copies as the official form. When completed, the state copies must show the employer's
													 North Carolina withholding identification number; must designate the state tax as North Carolina tax; and the
													 North Carolina gross wages must be separately stated if they are different from federal gross wages.
													 Statements which do not meet the above requirements shall not be accepted and employees shall not be given
													 credit for the tax withheld.
Authority
													 G.S.
													 105-163.7;
													 105-254;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. February 1, 2005; May 1, 1984;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0120 - RECIPROCITY OF TAX CREDITS

Current through Register Vol. 39, No. 2, July 15, 2024
North Carolina does not allow tax credit to nonresidents for income
													 tax paid to another state or country; therefore, any relief from double taxation must be granted by the state
													 of residence. North Carolina provides such relief to its residents as explained in
													 17 NCAC 06C
													 .0107.
Authority
													 G.S.
													 105-153.9(a);
													 105-163.22;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. June 1, 1990;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0121 - REPEALED - CREDIT FOR INCOME TAX WITHHELD

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.10;
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Repealed Eff. June 1, 1982.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0122 - REPEALED - FRINGE BENEFITS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.1(6);
													 105-163.2;
													 105-163.18;
													 105-262;
Eff. July 1, 1986;
Repealed
													 Eff. June 1, 1990.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0123 - EMPLOYEE'S WITHHOLDING ALLOWANCE CERTIFICATE

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Requirement. -- Each new employee, before
											  beginning employment, shall furnish his or her employer with a signed North Carolina Employee's Withholding
											  Allowance Certificate, Form NC-4, Form NC-4 EZ, or Form NC-4 NRA. A federal exemption certificate shall not
											  be acceptable. A certificate filed by a new employee shall be effective upon the first payment of wages after
											  it is filed and remains in effect until the employee furnishes a new one.
											  G.S.
											  105-153.3 defines the terms married individual, head of household, and
											  surviving spouse (qualifying widow(er)) by reference to the Internal Revenue Code; however, the number of
											  allowances to which an individual is entitled may differ under federal and state law. If an employee fails to
											  furnish an allowance certificate, Form NC-4, Form NC-4 EZ, or Form NC-4 NRA, the employer shall withhold tax
											  as if the employee is single with no allowances.
(b) Notice. --
											  The employer is not required to ascertain whether or not the total amount of allowances claimed is greater
											  than the total number to which the employee is entitled. If, however, the employer has reason to believe that
											  the number of allowances claimed by an employee is greater than the number to which the employee is entitled,
											  the employer shall notify the Department of Revenue at the time for filing the quarterly report for the
											  quarter during which the certificate is received, if the employer files quarterly withholding reports. If the
											  employer files monthly withholding reports, the employer shall notify the Department of Revenue of
											  certificates received during the quarter at the time for filing the monthly report for the third month of the
											  quarter.
(c) Military spouse. - A military spouse exempt from
											  withholding under the Military Spouse Residency Relief Act shall furnish an employer a Form NC-4 EZ
											  certifying the spouse meets the requirements of the Military Spouse Residency Relief Act and the state in
											  which the spouse is domiciled, a copy of the spouse's spousal military identification card, and a copy of the
											  servicemember's most recent leave and earnings statement. A new Form NC-4 EZ shall be submitted each calendar
											  year, along with the supplemental information set forth in this Paragraph.
Authority
													 G.S.
													 105-163.2;
													 105-163.5;
													 105-262; 50
													 U.S.C. 571;
Eff. June 1, 1990;
Amended Eff. August
													 1, 2002; June 1, 1993; October 1, 1991;
Readopted Eff. May 1,
													 2016.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0124 - ADDITIONAL WITHHOLDING ALLOWANCES

Current through Register Vol. 39, No. 2, July 15, 2024
(a) Deductions. -- Additional withholding
											  allowances may be claimed by taxpayers expecting to have allowable itemized deductions exceeding the standard
											  deduction or allowable adjustments to income. For most taxpayers, one additional allowance may be claimed for
											  each two thousand five hundred dollars ($2,500) that the itemized deductions allowed under
											  G.S.
											  105-153.5(a)(2) are expected to exceed the standard
											  deduction allowed under G.S.
											  105-153.5(a)(1) and for each two thousand five hundred
											  dollars ($2,500) of net adjustments reducing income.
(b) Tax
											  Credits. -- A taxpayer expecting to have allowable tax credits may claim additional withholding allowances.
											  The number of additional allowances shall be determined by dividing the amount of the tax credit by the
											  product determined by multiplying the withholding tax rate by two thousand five hundred dollars ($2,500) and
											  then rounding that number down to the nearest whole number. The withholding tax rate is the individual income
											  tax rate plus one tenth of one percent (0.1%).
Authority
													 G.S.
													 105-163.2(b);
													 105-163.2A;
													 105-163.5;
													 105-262;
Eff. June 1, 1990;
Amended
													 Eff. April 1, 2001; July 1, 1999;
Readopted Eff. May 1, 2016;
Amended Eff. May 1,
													 2018.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0100 - WITHHOLDING INCOME TAXES › Section 06C .0125 - REPEALED - PENALTY

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.5;
													 105-262;
Eff. June 1, 1990;
Repealed
													 Eff. June 1, 1993.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0200 - REPORTING AND PAYING TAX WITHHELD › Section 06C .0201 - NEW WITHHOLDING AGENTS

Current through Register Vol. 39, No. 2, July 15, 2024
North Carolina does not use a deposit system for income tax
													 withheld. Each new withholding agent who is required to withhold North Carolina income tax must complete and
													 file with the Department an application for a withholding identification number, Form NC-BR, Business
													 Registration Application for Income Tax Withholding, Sales and Use Tax, and Machinery, Equipment, and
													 Manufacturing Fuel Tax, which can be obtained from any office of the Department or on the Department's
													 website at
www.dornc.com
. A withholding identification number will be
													 assigned. The number must be used on all reports and correspondence concerning withholding.
Authority
													 G.S.
													 105-262;
Eff. February 1, 1976;
Amended Eff.
													 September 1, 2008; April 1, 2001; August 1, 1998; June 1, 1993; June 1, 1990;
Pursuant to
													 G.S.
													 150B-21.3A, rule is necessary without substantive public interest Eff. July
													 26, 2015.
North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter C - WITHHOLDING › Section .0200 - REPORTING AND PAYING TAX WITHHELD › Section 06C .0202 - REPEALED - REPORTS AND PAYMENTS

Current through Register Vol. 39, No. 2, July 15, 2024
Authority
													 G.S.
													 105-163.6;
													 105-163.18;
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. February 3, 1992; February 1, 1991; February 1, 1988; February 21, 1979;
Repealed Eff. June
													 1, 1993.