D-422A: Annualized Income Installment Worksheet (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
North Carolina Form D-422A is a worksheet for calculating 2024 estimated tax installments using income and deductions for each period of the year. It determines the installment amounts to enter on Form D-422. Keep this worksheet for your records rather than filing it with your re
Who files this form
D-422A is a worksheet to keep for your records, not a form to file with your return.
If you did not receive income evenly throughout 2024, such as from a seasonal business, completing this worksheet may reduce your required estimated tax payment for one or more periods.
Part-year residents and nonresidents should complete only the columns for periods in which they had income from North Carolina sources.
What you'll need
Have these forms and amounts available to complete the worksheet:
- Your federal adjusted gross income for each period.
- 2024 Form D-400: additions on Line 7, deductions on Line 9, the child deduction on Line 10b, and N.C. itemized deductions or the standard deduction on Line 11.
- Form D-422: tax credits from Part I, Line 2, and the amount from Part I, Line 8.
- For part-year residents and nonresidents: the decimal amount on Form D-400, Line 13.
How to file
Do not file D-422A with your return. Keep it for your records.
Complete Lines 1 through 25 of one column before starting the next column.
If you use the annualized income installment method:
- Transfer Line 25 from each worksheet column to the corresponding column on Form D-422, Line 16, and check the box on that line.
- Enter the letter E in the exception box next to Form D-400, Line 26e, to avoid receiving an assessment for underpayment of estimated tax.
Common mistakes
- Filing the worksheet with your return. The form says to keep it for your records instead.
- Using the worksheet for only one payment due date. If you use it for any payment due date, you must use it for all payment due dates.
- Missing the required entries on other forms. Transfer Line 25 to Form D-422, Line 16, check that line's box, and enter E next to Form D-400, Line 26e.
- Entering itemized deductions when you do not claim them. Enter zero on Line 8 and skip to Line 11 instead.
- Missing the special rules for part-year residents and nonresidents. Complete only the applicable North Carolina income columns. Before figuring tax on Line 16, multiply each Line 15 amount by the decimal on Form D-400, Line 13.
Questions people ask
How does annualizing income work?
The method annualizes your tax at the end of each period using a reasonable estimate of income and deductions tied to events from the beginning of the tax year through that period's end.
How does the worksheet choose my required installment?
It selects the smaller of the annualized income installment or the regular installment, with the regular installment increased by amounts saved using the annualized method for earlier installments.
What if my only North Carolina income was received in November?
If you are a part-year resident or nonresident, complete only the last column.
Where can I find more information?
See Form D-422 for information on determining estimated tax. See Form D-401 for information on exceptions to underpayment of estimated tax. The worksheet directs readers to ncdor.gov for details.