D-422A: Annualized Income Installment Worksheet (2025)
North Carolina · North Carolina DOR · Used for tax years 2025
North Carolina Form D-422A is the 2025 Annualized Income Installment Worksheet used to calculate required estimated tax installments based on income and deductions for each period. Keep this worksheet for your records rather than filing it with your return.
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 2025, such as from a seasonal business, completing this worksheet may reduce your required estimated tax payment for one or more periods.
If you use the worksheet for any payment due date, you must use it for all payment due dates. Part-year residents and nonresidents should complete only the columns for periods when they had income from North Carolina sources.
What you'll need
Have these records and forms available to complete the worksheet:
- The name or names shown on your tax return and your Social Security number.
- Your federal adjusted gross income for each worksheet period, along with the applicable additions, deductions, and North Carolina itemized deductions.
- Your 2025 Form D-400 amounts from Lines 7, 9, 10b, and 11. Part-year residents and nonresidents also need the decimal amount from Line 13.
- Form D-422, including the tax credits on Part I, Line 2, and the amount on Part I, Line 8.
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:
- Enter each column’s Line 25 amount 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
- Sending the worksheet with your return. Keep D-422A for your records instead.
- Using the worksheet for only some payment due dates. If you use it for any payment due date, you must use it for all payment due dates, subject to the special column instructions for part-year residents and nonresidents.
- Missing the required entries on other forms. Transfer Line 25 to Form D-422, Line 16, for each column and check its box. Also enter E in the exception box next to Form D-400, Line 26e.
- Overlooking the part-year resident and nonresident adjustment. Before figuring Line 16 tax, multiply each applicable Line 15 amount by the decimal on Form D-400, Line 13.
- Entering itemized deductions when you do not claim them. Enter zero on Line 8 and skip to Line 11.
- Using the wrong ink when handwriting. Use blue or black ink, not red. Do not use dollar signs, commas, or other punctuation marks.
Questions people ask
How does the annualized income installment method work?
It 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 the end of that period.
How is each required installment selected?
The worksheet selects the smaller of the annualized income installment or the regular installment, with the regular installment increased by amounts saved through annualizing earlier installments.
What if my only North Carolina-source income was received in November?
If you are a part-year resident or nonresident, complete only the last column. The form directs you to complete only columns for periods when you had North Carolina-source income.
Where can I find more information?
The worksheet points to Form D-422 for information on determining estimated tax and Form D-401 for information on exceptions to underpayment of estimated tax. It also directs you to ncdor.gov for details.