D-407: Income Tax Return for Estates and Trusts (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-407 is North Carolina’s 2024 income tax return for estates and trusts. It reports taxable income, adjustments, credits and payments to calculate the estate’s or trust’s tax due or refund.
Who files this form
Form D-407 is North Carolina’s income tax return for estates and trusts. The fiduciary representing the estate or trust signs the return and identifies their role as administrator, executor, or other.
The supplied form does not state filing thresholds or explain which estates and trusts are required to file.
What you'll need
Gather the information and applicable forms needed to complete the return:
- The estate’s or trust’s legal name, federal employer identification number, and fiduciary name and address.
- Federal taxable income, including ESBT income, and information about credits and payments.
- For an estate, the decedent’s date of death. For a trust, the date it was created and the grantor’s name and address.
- Beneficiary names, identifying numbers, and net North Carolina source income for Schedule A.
- Form NC-PE to complete the additions and deductions in Schedule A.
- Form D-407TC if claiming tax credits on Line 9a, and Form 1099 information if reporting North Carolina tax withheld on Line 9d.
- A separate schedule if there are more than three beneficiaries.
The fiduciary must also provide each beneficiary with Form NC K-1 for Form D-407 and any other information needed to prepare the appropriate North Carolina tax return.
How to file
Use capital letters for the name and address, fill in all applicable circles, and complete the return and applicable schedules. The fiduciary must sign and date the return. A preparer other than the fiduciary also has a signature and date section.
Mail the return to:
NC Department of Revenue
P.O. Box 25000
Raleigh, NC 27640-0640
The form says you can pay online at ncdor.gov. Payments must be in U.S. currency from a domestic bank.
Common mistakes
- Not giving beneficiaries their tax information. The form reminds the fiduciary to provide each beneficiary with Form NC K-1 for Form D-407 and any other information needed for the beneficiary’s North Carolina return.
- Leaving out additional beneficiaries. If there are more than three beneficiaries, include a separate schedule for the additional beneficiaries.
Questions people ask
What tax rate does the 2024 form use?
Line 8 calculates North Carolina income tax by multiplying North Carolina taxable income on Line 7 by 4.50% (0.0450).
Does the form ask about a federal extension?
Yes. It asks whether the entity was granted an automatic extension to file its 2024 federal income tax return, such as Form 1041. Mark Yes or No.
Can the estate or trust contribute to the N.C. Education Endowment Fund?
Yes. To make a contribution, enclose Form NC-EDU and the payment. To designate some or all of an overpayment to the Fund, enter the amount on Line 16.
What should I include with an amended return?
Mark the Amended Return circle and explain the changes in the space provided on Page 2. Attach additional sheets if necessary. The form also directs amended-return filers to the instructions for credits and payments and for the overpayment line.