D-407: Income Tax Return for Estates and Trusts (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
Form D-407 is the 2025 North Carolina income tax return for estates and trusts. It reports federal taxable income, North Carolina adjustments, income not taxable to North Carolina, credits and payments, and the resulting tax due or refund.
What you'll need
Have the estate’s or trust’s legal name, federal employer ID number, fiduciary contact information, and federal taxable income, including ESBT income, ready.
The form also calls for:
- For an estate: the decedent’s date of death.
- For a trust: the date the trust was created and the grantor’s name and address.
- Beneficiary identifying numbers, names, 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.
- An explanation of changes if filing an amended return, with additional sheets if necessary.
If making a separate contribution to the N.C. Education Endowment Fund with the return, enclose Form NC-EDU and the payment.
How to file
Save the fill-in PDF to your computer and complete it electronically. Use capital letters for the name and address, and fill in all applicable circles.
Complete the applicable schedules. Schedule A directs you to complete Form NC-PE and apportion additions and deductions between the estate or trust and its beneficiaries based on income distributions during the tax year.
Sign and date the return in the fiduciary signature area. A preparer other than the fiduciary also has a signature and date area.
Use the form’s print icon, print single-sided, set page scaling to “none,” and uncheck “Auto-Rotate and Center.” Do not include the web fill-in instruction page.
Mail the original return to:
NC Department of Revenue
P.O. Box 25000
Raleigh, NC 27640-0640
You can pay online at ncdor.gov. The form directs payments to be in U.S. currency from a domestic bank.
Common mistakes
- Do not handwrite information or use commas in amounts.
- Use a minus sign for negative numbers, not brackets.
- Do not print on both sides of the paper. Set page scaling to “none” and uncheck “Auto-Rotate and Center.”
- Do not mix form types or submit photocopies. Submit original returns only.
- Do not include the web fill-in instruction page.
- If there are more than three beneficiaries, include a separate schedule for the additional beneficiaries.
- The fiduciary must give each beneficiary Form NC K-1 for Form D-407 and any other information needed to prepare the appropriate North Carolina tax return.
Questions people ask
What tax rate does the 2025 form use?
Line 8 instructs you to multiply North Carolina taxable income on Line 7 by 4.25% (0.0425).
What should I report about a federal filing extension?
Answer yes or no to whether the entity was granted an automatic extension to file its 2025 federal income tax return, such as Form 1041.
Can an overpayment be contributed to a fund?
Yes. Line 15 allows an amount of the overpayment to be contributed to the N.C. Nongame and Endangered Wildlife Fund. Line 16 allows an amount to be contributed to the N.C. Education Endowment Fund. Line 17 subtracts both contributions from the overpayment to calculate the refund.
What extra information is needed for an amended return?
The form includes an “Amended Return” circle and a space to explain the changes. Attach additional sheets if necessary.