D-400TC: Individual Income Tax Credits (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-400TC calculates North Carolina individual income tax credits for 2024. It reports credits for income tax paid to another state or country, rehabilitation of historic structures, prior-year credit carryovers, and business incentive and energy tax credits.
Who files this form
If you claim a tax credit on Form D-400, Line 16, you must attach Form D-400TC to your return. Otherwise, the credit may be disallowed.
Part 1, for income tax paid to another state or country, is for North Carolina residents only.
What you'll need
Have your Form D-400 available. D-400TC uses the North Carolina income tax amount from Form D-400, Line 15.
Depending on the credits you claim, the form also calls for:
- The Out-of-State Tax Credit Worksheet in the instructions if you claim a credit for taxes paid to more than one state or country.
- Form NC-Rehab, attached to the front of Form D-400, if you take a credit on Line 12 or 13.
- Form NC-478 and any required supporting schedules, attached to the front of Form D-400, for business incentive and energy tax credits on Line 19.
For Part 1, you need the income amounts requested on Lines 1 and 2 and the net tax paid to the other state or country on the income shown on Line 2.
How to file
The form says to refer to the instructions before completing it.
- Enter your Social Security number and the first 10 characters of your last name.
- Complete the applicable credit sections and the total credit calculation in Part 3.
- Add Lines 18 and 19 and enter the result on Line 20 and on Form D-400, Line 16. Line 20 cannot exceed the tax on Form D-400, Line 15.
- Attach D-400TC to your return. Attach Form NC-Rehab or Form NC-478 and required supporting schedules to the front of Form D-400 when applicable.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out D-400TC: If you claim a credit on Form D-400, Line 16, attach this form or the credit may be disallowed.
- Sending a photocopy: The form says not to send a photocopy.
- Using the wrong number format: Enter whole U.S. dollars only for dollar amounts. Round the decimal on Line 3 to four decimal places.
- Completing Lines 1 through 6 for multiple states or countries: Use the Out-of-State Tax Credit Worksheet instead to determine Line 7a.
- Entering historic rehabilitation amounts on the wrong lines: Enter expenditures or expenses on Lines 10a and 11a only if 2024 is the first year the credit is taken. Lines 8, 9, 10b, 11b, 12, and 13 are for the credit amounts taken.
- Including excluded carryovers on Line 14: Do not include carryovers of income tax credits taken on Form NC-478 or Form NC-Rehab.
- Exceeding the credit limit: Line 20 cannot exceed Form D-400, Line 15.
Questions people ask
How is the credit for tax paid to one other state or country calculated?
Divide Line 2 by Line 1 and round the result to four decimal places on Line 3. Multiply Line 4 by Line 3 to get Line 5. Enter the lesser of Line 5 or the net tax paid shown on Line 6 on Line 7a. Part 1 is for North Carolina residents only.
What if I claim credits for taxes paid to more than one state or country?
Do not complete Lines 1 through 6. Use the Out-of-State Tax Credit Worksheet in the instructions to determine Line 7a. Enter the number of states or countries on Line 7b.
When do I need to attach Form NC-Rehab?
Attach Form NC-Rehab to the front of Form D-400 if you take a credit on D-400TC, Line 12 or 13. Line 12 comes from NC-Rehab, Part 4, Line 23, and Line 13 comes from NC-Rehab, Part 4, Line 26.
Can my total 2024 credits exceed my North Carolina income tax?
No. The total on D-400TC, Line 20, cannot exceed the tax shown on Form D-400, Line 15.