01 Mar North Carolina Income Tax Tip
As a CPA who practices in the greater Asheville / Weaverville area I deal with the North Carolina Income Tax on a daily basis. I have noticed this year that the changes to the NC tax code are causing a lot of questions with both my clients and those posting questions on social media platforms.
Here are a few of the changes that impact the individual tax preparer:
- There will be a flat 5.8% NC Income Tax Rate. This is a decrease of the 6-7.75% tax rate that previously existed.
- Repealed personal exemption amounts and increased the standard deductions.
- Mortgage Interest and real estate tax itemization will be limited to $20,000 combined for non-rental properties.
- There will be no deductions for the first $2,000 or $4,000 in retirement income.
- Eliminate the tax deductibility of contributions to the NC 529 College Savings plan.
Here is how the NC Department of Revenue stated it:
The 2013 legislative session brought many changes to the Revenue laws and the North Carolina Department of Revenue. These changes are detailed in the 2013 Tax Law Changes by taxing schedule and General Statute. Listed below are links to each section of the document.
Link to full list of tax law changes
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