D-403: Partnership Income Tax Return (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-403 is North Carolina’s 2024 Partnership Income Tax Return. It reports partnership income or loss, adjustments, payments, and any tax due for nonresident partners and Taxed Partnerships.
What you'll need
Have the following information and any applicable schedules ready:
- The partnership’s legal name, address and federal employer identification number. LLCs must also enter their North Carolina Secretary of State ID.
- Each partner’s name, address, identifying number, ownership share percentage, partner type and North Carolina residency status.
- Income figures from Part 6, Line 12, or federal Form 1065, Schedule K, Lines 1 through 11, for Part 1, Line 1.
- Form NC-PE, if the partnership has North Carolina additions to or deductions from income. Complete and attach both pages.
- Form D-403TC, if claiming the tax credits referenced in Part 4, Lines 19 or 26.
- A supporting schedule if using a special apportionment formula, and the schedules requested for applicable income and deduction entries in Parts 5 and 6.
- Additional partner schedules if there are more than two partners. Only one Partners’ Total is needed.
How to file
Enter the partnership’s name and address in capital letters and fill in all applicable circles. Indicate whether the partnership is making the Taxed Partnership election for tax year 2024.
Complete Part 4, Sections A and B, for each partner. Complete the nonresident partner and Taxed Partnership tax calculations as applicable. In Part 1, complete Lines 11 through 13 if the partnership has nonresident partners or is a Taxed Partnership. Otherwise, skip to Line 14.
Have the managing partner sign and date the return. The form also includes a signature section for a paid preparer other than the managing partner.
Mail the return to:
North Carolina Department of Revenue
P.O. Box 25000
Raleigh, North Carolina 27640-0640
You can pay online at ncdor.gov. Payments must be in U.S. currency from a domestic bank.
Common mistakes
- Leaving out a page of Form NC-PE. When NC-PE is required, attach both pages. The form warns that the Department may be unable to process the return without them.
- Not giving partners their tax information. All partnerships must provide each partner with an NC K-1 for Form D-403 and any other information needed to prepare the appropriate North Carolina return.
- Using the wrong precision for apportionment. Apportionment factors must be calculated to four places to the right of the decimal.
- Entering credits for the wrong claimant. Enter a credit on Part 4, Line 8, only if the partner can claim it. Enter a credit on Line 23 only if the Taxed Partnership can claim it.
- Overlooking amended-return instructions. The form specifically directs filers to see the instructions when filing an amended return.
Questions people ask
What if the partnership has more than two partners?
Attach a schedule for each partner. Only one Partners’ Total is needed.
Does each partner need an NC K-1?
Yes. All partnerships must provide each partner with an NC K-1 for Form D-403 and any other information needed to prepare the appropriate North Carolina tax return.
What apportionment percentage applies if the partnership is not apportioning income outside North Carolina?
Part 2, Section A, directs the partnership to enter 100% on Part 4, Line 12, for each partner.
Can an overpayment be applied to next year’s estimated tax?
The 2024 form allows an amount from Line 23 to be applied to 2025 estimated income tax on Line 24.
Can the partnership contribute to the N.C. Education Endowment Fund?
Yes. To make a contribution, enclose Form NC-EDU and the partnership’s payment. To designate some or all of an overpayment to the Fund, enter the designation on Line 26.