D-400TC: Individual Income Tax Credits (2025)

Who files this form

Attach Form D-400TC to your 2025 North Carolina return if you claim a tax credit on Form D-400, Line 16. If you do not attach it, 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

• Form D-400: You will use the North Carolina income tax amount from Line 15 and report your total credits on Line 16.
• For credits for taxes paid to other states or countries: Have the income and net tax paid amounts requested in Part 1. If claiming a credit for more than one state or country, use the “Out-of-State Tax Credit Worksheet” referenced in the form.
• Form NC-Rehab: Attach it to the front of Form D-400 if you claim a credit on D-400TC, Line 12 or 13.
• Form NC-478 and required supporting schedules: Attach these to the front of Form D-400 if claiming business incentive and energy tax credits on Line 19.

The form also asks for your Social Security number and the first 10 characters of your last name.

How to file

Attach the completed D-400TC to Form D-400 when claiming a credit on D-400, Line 16. Enter the total from D-400TC, Line 20, on that line of your return.

For the web fill-in form:

• Save the PDF to your computer and use the latest version of Adobe Acrobat Reader to complete it.
• Use the form’s print icon to ensure all required fields are completed.
• Print single-sided, set page scaling to “none,” and leave “Auto-Rotate and Center” unchecked.
• Submit the original form, not a photocopy. Do not include the web fill-in instructions page.

The supplied text does not give a mailing address or e-filing instructions.

Common mistakes

• Leaving out D-400TC: A credit claimed on D-400, Line 16, may be disallowed if this form is not attached.
• Using Lines 1–6 for multiple states or countries: If claiming a credit for more than one, leave those lines uncompleted and use the referenced “Out-of-State Tax Credit Worksheet” to determine Line 7a.
• Entering expenses instead of credits: Enter expenditures or expenses on Lines 10a and 11a only if 2025 is the first year the credit is taken. Lines 8, 9, 10b, 11b, 12, and 13 are for credit amounts.
• 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 tax limit: Line 20 cannot exceed the tax on Form D-400, Line 15.
• Ignoring fill-in and printing rules: Do not handwrite information, use commas in amounts, or use brackets for negative numbers. Use a minus sign for negative amounts. Do not mix form types or submit photocopies.

Questions people ask

How is the credit for tax paid to one other state or country calculated?

Part 1 directs you to divide Line 2 by Line 1 and round the result to four decimal places. Multiply that result by the North Carolina income tax on Line 4. The credit on Line 7a is the lesser of that amount or the net tax paid to the other state or country on the income shown on Line 2.

What if I claim a credit for taxes paid to more than one state or country?

Do not complete Lines 1–6. Use the “Out-of-State Tax Credit Worksheet” referenced in the form to determine Line 7a. Enter the number of states or countries on Line 7b.

Where do I enter historic rehabilitation credits from Form NC-Rehab?

For an income-producing historic structure under Article 3L, enter the amount from NC-Rehab, Part 4, Line 23, on D-400TC, Line 12. For a nonincome-producing historic structure under Article 3L, enter the amount from NC-Rehab, Part 4, Line 26, on Line 13. Attach NC-Rehab to the front of Form D-400.

Can my total credits exceed my North Carolina income tax?

No. D-400TC states that the total on Line 20 cannot exceed the tax shown on Form D-400, Line 15.

Official sources

• https://www.ncdor.gov/2025-d-400tc-web-fill-version/open