CD-405 CW: Combined Corporate Income Tax Worksheet (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form CD-405 CW is North Carolina’s Combined Corporate Income Tax Worksheet, filed with Form CD-405. It lists corporations included in and excluded from the combined return and calculates combined federal taxable income before net operating losses, including eliminations between m
Who files this form
Form CD-405 CW is the Combined Corporate Income Tax Worksheet and is filed with Form CD-405.
A corporation may not file a North Carolina combined corporate income tax return without written permission from the Secretary of Revenue.
What you'll need
Gather the information and attachments needed for the worksheet:
- Names and federal employer identification numbers (FEINs) for the principal member and corporations included in or excluded from the combined return.
- Reasons for excluding corporations. Attach an explanation if you select “Other.” For a new member, provide the date it entered the group.
- Income and deduction details for Schedule C, including Federal Form 1120, line 29b, for special deductions.
- Supporting schedules where requested, including cost of goods sold, dividends, royalties, gains, other income, officer compensation with addresses, and other deductions. Attach Form 7205 for the energy efficient commercial buildings entry.
- Schedules for eliminations between members and supporting explanations or schedules requested for adjustments in Schedule D.
- North Carolina and everywhere amounts for Schedule E. Attach a supporting schedule if using a special apportionment formula.
- Payment information from Forms CD-429 and CD-419, line 10, plus any prior-year overpayment from the 2023 Form CD-405, line 35.
How to file
File Form CD-405 CW with Form CD-405. The supplied worksheet does not give a mailing address or e-file directions.
Transfer these worksheet results to Form CD-405, Schedule B:
- Schedule C, line 30, Column E: line 7.
- Schedule D, line 5, Column E: line 8.
- Schedule E apportionment factor: line 14.
- Schedule F, line 6, combined total estimated tax payments: line 24b.
- Schedule F, line 7, total extension payments from Columns A through C: line 24a.
For paper forms, submit originals, not photocopies. Do not include the page labeled “Do Not Include This Page.”
Common mistakes
- Filing a combined return without written permission from the Secretary of Revenue.
- Using red ink. Use blue or black ink for handwritten forms.
- Adding dollar signs, commas, or other punctuation marks to handwritten entries.
- Printing with page scaling enabled. Set scaling to “none” and leave “Auto-Rotate and Center” unchecked.
- Printing on both sides of the paper.
- Submitting photocopies instead of originals, mixing form types, or including the page marked “Do Not Include This Page.”
- Calculating separate apportionment factors for group members. The form requires one factor for the combined group, calculated to four places to the right of the decimal.
Questions people ask
Can a corporation file a combined return without permission?
No. Written permission from the Secretary of Revenue is required.
Where do I list corporations included in or excluded from the return?
List included corporations and their FEINs in Schedule A. List excluded corporations and their FEINs in Schedule B, and fill in the circles for the reasons they were excluded. Attach an explanation for “Other.”
Does each member calculate its own apportionment factor?
No. Calculate only one apportionment factor for the combined group, to four places to the right of the decimal.
When does the group use a special apportionment formula?
Use the standard formula unless more than 50% of the group’s combined income subject to apportionment comes from a business activity subject to special apportionment. In that case, use the formula for that industry for the entire group and attach a supporting calculation schedule.
Where do I report members’ tax payments?
Use Schedule F for each member’s estimated tax payments, prior-year overpayment, and income tax extension payments. Transfer the combined estimated payment total to Form CD-405, Schedule B, line 24b, and the extension payment total to line 24a.