CD-405 CW: Combined Corporate Income Tax Worksheet (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
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. File it with Form CD-405 for a North Carolina combined corporate income tax return.
A corporation may not file a combined return without written permission from the Secretary of Revenue.
What you'll need
Have the following information and supporting forms ready:
- Names and federal employer identification numbers (FEINs) for the principal member and corporations included in or excluded from the combined return. Include the principal member’s prior name and FEIN if different.
- Reasons for excluding corporations, with an explanation if “Other” applies. For new members, provide the date they entered the group.
- Income, deduction, adjustment, and apportionment information for the members, plus schedules supporting eliminations between members.
- Federal Form 1120, line 29b, for special deductions.
- Form CD-429 payment information, 2024 Form CD-405, line 35, for the prior-year overpayment, and Form CD-419, line 10, for extension payments.
Attach schedules where requested, including those for cost of goods sold, dividends, gross royalties, capital gains, net gains or losses, other income, officer compensation including addresses, and other deductions. Attach Form 7205 for the energy-efficient commercial buildings entry.
Schedule D also calls for supporting schedules or explanations for certain adjustments. If using a special apportionment formula, attach a schedule supporting the calculation.
How to file
File CD-405 CW with Form CD-405.
- Complete Schedule A for included corporations and Schedule B for excluded corporations.
- Complete Schedule C. Transfer line 30, Column E, to Form CD-405, Schedule B, line 7.
- Complete Schedule D. Transfer line 5, Column E, to Form CD-405, Schedule B, line 8.
- Complete Schedule E. Enter the combined apportionment factor on Form CD-405, Schedule B, line 14.
- Complete Schedule F. Transfer total estimated tax payments to Form CD-405, Schedule B, line 24b, and total extension payments to line 24a.
The printed submission directions say to submit originals only, not photocopies. Do not include the handwritten-form guidelines page.
Common mistakes
- Filing a combined return without the Secretary of Revenue’s written permission.
- Using red ink. Use blue or black ink instead.
- Entering dollar signs, commas, or other punctuation marks.
- Printing with page scaling enabled, Auto-Rotate and Center checked, or double-sided printing selected. Set scaling to “none,” uncheck Auto-Rotate and Center, and print on one side only.
- Submitting photocopies instead of originals, mixing form types, or including the guidelines page marked “Do Not Include This Page.”
- Calculating separate apportionment factors for group members. Calculate only one factor for the combined group, 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 excluded from the combined return?
Use Schedule B. List each corporation’s name and FEIN, and fill in the circles for the reasons it was excluded. Attach an explanation if you select “Other.”
Which apportionment formula does the group use?
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 that industry’s formula for the entire group.
Where do I report payments made by individual members?
Use Schedule F for each member’s estimated tax payments, prior-year overpayment, and income tax extension payments. Transfer the totals to the specified payment lines on Form CD-405.