D-407TC: Estates and Trusts Tax Credit Summary (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form D-407TC summarizes an estate’s or trust’s tax credits applied to its 2024 North Carolina income tax. It includes credits for tax paid to another state or country, historic rehabilitation credits, and credits carried over from previous years.
Who files this form
File the 2024 Form D-407TC with Form D-407, Estates and Trusts Income Tax Return, if tax credits are allocated to the fiduciary. Enter only the portion of each credit allocated to the fiduciary.
What you'll need
- Form D-407: File D-407TC with this return. The North Carolina income tax amount comes from Form D-407, page 1, line 8.
- Credit schedules: Attach a schedule for each credit in Part 1.
- Form NC-Rehab, if applicable: Use Part 4, lines 23 and 26 for the Article 3L historic rehabilitation credits.
- Form NC-478, if applicable: Use Part 3 for credits subject to the 50% limit taken in 2024.
- Another state's or country's tax return and proof of payment: Attach these for the tax paid to another state or country reported in Part 5, Section B, line 6.
- Additional pages, if needed: Attach them for the apportionment information in Part 5, Section A.
How to file
File Form D-407TC with Form D-407, Estates and Trusts Income Tax Return, if tax credits are allocated to the fiduciary.
On D-407TC, line 14, add lines 11 through 13. Enter that total on Form D-407, line 9a.
The supplied form does not state a mailing address or e-file method.
Common mistakes
- Including credits not allocated to the fiduciary: Enter only the fiduciary's portion.
- Leaving out credit schedules: Part 1 requires an attached schedule for each credit.
- Including certain credits on line 8: Do not include credits claimed on Form NC-478 or Form NC-Rehab in the carryover amount on line 8.
- Entering rehabilitation costs in the wrong year: Complete lines 15 and 16 only if 2024 is the first year the tax credit is taken.
- Using Part 5, Section B, lines 1 through 6 for multiple states or countries: If the estate or trust is eligible to claim the credit for more than one state or country, do not complete those lines. Instead, use the “Out-of-State Tax Credit Worksheet” in the instructions to determine line 7a.
- Omitting supporting proof: Part 5, Section B, line 6 calls for a copy of the other return and proof of payment.
Questions people ask
Where does the total credit go on Form D-407?
Enter the total from D-407TC, line 14, on Form D-407, line 9a.
How is the Part 1 credit total limited?
Add lines 1 through 8 and enter the total on line 9. On line 11, enter the smaller of line 9 or the North Carolina income tax on line 10.
Where do I report credits subject to the 50% limit?
Enter the total credits subject to the 50% limit taken in 2024 on line 12, using the amount from Form NC-478, Part 3.
What if the credit covers taxes paid to more than one state or country?
Do not complete Part 5, Section B, 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 for which a credit is claimed on line 7b.
When should I complete lines 15 and 16?
Enter qualified rehabilitation expenditures or rehabilitation expenses on these lines only if tax year 2024 is the first year the tax credit is taken.