D-422: Underpayment of Estimated Tax by Individuals (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
North Carolina Form D-422 helps individuals determine whether they owe interest for underpaying their 2025 estimated income tax and calculate the amount owed. It calculates the required annual payment, underpayment, and interest using a short or regular method. Keep this form for
Who files this form
Use Form D-422 to check whether you owe interest for underpaying your 2025 North Carolina estimated income tax and to calculate any interest. Do not file this form with your return. Keep it for your records.
In general, you may owe interest if your North Carolina income tax withheld plus timely estimated tax payments are less than the smaller of:
- 90% of your 2025 tax, or
- 100% of your 2024 tax, if your 2024 return covers a 12-month period.
You do not owe underpayment interest if:
- Your 2025 tax minus tax credits and North Carolina tax withheld is less than $1,000. Complete Part I, Lines 1 through 6, to check.
- You had no individual income tax liability for 2024, meaning tax shown due minus tax credits.
- You qualify for the farmer or commercial fisherman exception described below.
When it's due
For tax year 2025, the form prints these estimated payment due dates:
- April 15, 2025
- June 15, 2025
- September 15, 2025
- January 15, 2026
If a payment due date falls on a Saturday, Sunday, or holiday, payment is due on or before the next business day.
Other dates relevant to the 2025 calculation:
- January 31, 2026: If you file your 2025 return and pay the tax due by this date, include the tax paid with your return in Part III, Line 17, column (d).
- March 1, 2026: Qualifying farmers and commercial fishermen must file their 2025 Form D-400 and pay the entire tax shown due by this date to use their underpayment-interest exception.
- April 15, 2026: For the regular method, count interest days through the payment date or this date, whichever is earlier. The short method also uses this date to determine the Line 14 adjustment.
What you'll need
Have these forms and payment details available:
- 2025 Form D-400: Line 15 for income tax, Line 16 for tax credits, and Lines 20a and 20b for North Carolina withholding.
- 2024 Form D-400, if filed: Lines 15 and 16 for the prior-year tax calculation.
- Estimated tax payment amounts and dates, plus withholding amounts for each payment period if using the regular method.
- Any 2024 overpayment applied to 2025 estimated tax. Include it in Part III, Line 17, column (a).
- Form D-422A, 2025 Annualized Income Installment Worksheet, if using the annualized income installment method.
The form also asks for the name shown on your tax return and your Social Security number.
How to file
Do not submit Form D-422 with your tax return. Keep it for your records.
- Complete Part I, Lines 1 through 8, following the stop instructions to determine whether further calculation is needed.
- If eligible, use the short method in Part II, Lines 9 through 15. Otherwise, use the regular method in Part III, Lines 16 through 27.
- Enter the interest from Line 15 or Line 27 on Form D-400, Line 26e.
Common mistakes
- Sending D-422 with your return: The form says to keep it for your records instead.
- Using the short method without checking eligibility: The form warns that it cannot be used in all circumstances.
- Using Line 7 when it does not apply: If you were required to file a 2024 return but did not, or your 2024 tax year was shorter than 12 months, leave Line 7 blank and enter Line 4 on Line 8.
- Annualizing only some payment periods: If you annualize income for any period, you must annualize it for all periods. Complete Form D-422A and check the box on Line 16.
- Missing the farmer or fisherman exception code: If that exception applies, enter E in the exception box next to Form D-400, Line 26e, to avoid an underpayment assessment.
- Ignoring the stop instructions: For example, stop if Line 6 is less than $1,000 or Line 5 is at least Line 8. In either case, you do not owe interest.
Questions people ask
When can I use the short method?
You can use it if you made no estimated tax payments for 2025, or your only such payments were North Carolina withholding. You can also use it if you paid the same amount of estimated tax on each of the four payment due dates.
What if my income varied during the year?
The annualized income installment method may benefit you. Use Form D-422A to determine your required installments. If you annualize any payment period, you must annualize all periods.
How is North Carolina withholding allocated?
For the regular method, you are considered to have paid one-fourth of your withholding on each payment due date unless you can show otherwise.
What is the exception for farmers and commercial fishermen?
You do not owe underpayment interest if farming, including oyster farming, or fishing provided at least two-thirds of your gross income from all sources for 2024 or 2025, and you file your 2025 Form D-400 and pay the entire tax shown due by March 1, 2026. Enter E in the exception box next to Form D-400, Line 26e.