D-407TC: Estates and Trusts Tax Credit Summary (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
Form D-407TC summarizes North Carolina estate and trust tax credits allocated to the fiduciary and applied to 2025. 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 2025 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 tax credit allocated to the fiduciary.
What you'll need
- Form D-407: File D-407TC with this return. You also need the N.C. income tax amount from D-407, Page 1, Line 8.
- Credit schedules: Attach a schedule for each credit in Part 1.
- Form NC-Rehab, if applicable: Lines 6 and 7 use amounts from NC-Rehab, Part 4, Lines 23 and 26.
- Form NC-478, if applicable: Line 12 uses the amount from NC-478, Part 3.
- Other state or country tax return and proof of payment: Attach these for the fiduciary’s share of tax paid reported in Part 5, Section B, Line 6.
- Identification and income information: Have the legal name, federal employer ID number, and applicable income and tax-paid information for the fiduciary and beneficiaries.
How to file
File Form D-407TC with Form D-407. The supplied form does not give a mailing address or e-filing instructions.
For the web fill-in form:
- Save the PDF to your computer and complete it using the latest version of Adobe Acrobat Reader. Do not handwrite information.
- Use the form’s print icon to ensure all required fields are completed.
- Print one-sided, set page scaling to “none,” and uncheck Auto-Rotate and Center.
- Submit original returns only, not photocopies. Do not include the web fill-in instruction page.
Common mistakes
- Including credits not allocated to the fiduciary: Enter only the fiduciary’s portion.
- Duplicating carryover credits: On Line 8, do not include credits claimed on Form NC-478 or Form NC-Rehab.
- Entering rehabilitation costs in the wrong year: Complete Lines 15 and 16 only if 2025 is the first year the tax credit is taken.
- Using the single-state calculation for multiple states or countries: If claiming credit for 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.
- Incorrect amount formatting: Do not use commas or brackets for negative numbers. Use a minus sign for negative amounts.
- Incorrect submission format: Do not mix form types, submit photocopies of returns, or print on both sides of the paper.
Questions people ask
Where does the total credit go on Form D-407?
Add D-407TC Lines 11 through 13 and enter the total on Line 14. Enter that amount on Form D-407, Line 9a.
How is the Part 1 credit amount limited?
Add Lines 1 through 8 to get Line 9. On Line 10, enter the N.C. income tax from Form D-407, Page 1, Line 8. Enter the lesser of Lines 9 and 10 on Line 11.
Where do credits subject to the 50% limit go?
Enter the total credits subject to the 50% limit taken in 2025 on Line 12, using the amount from Form NC-478, Part 3.
What if the estate or trust claims a credit for taxes paid to more than one state or country?
Skip Part 5, Section B, Lines 1 through 6. Complete 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 enter rehabilitation expenditures or expenses on Lines 15 and 16?
Enter those amounts only if tax year 2025 is the first year the tax credit is taken.