North Carolina Itemized Deductions for Individuals Claiming Itemized Deductions on their Federal Return

You may itemize your deductions on your North Carolina return ONLY if you itemized deductions on your federal return.  If, on your federal return, you deduct mortgage insurance premiums as qualified residence interest under section 163 of the Internal Revenue Code on line 13 of Federal Schedule A, you deduct state and local taxes on line 5 of Federal Schedule A or you deduct foreign income taxes on line 8 of Federal Schedule A, use the Itemized Deduction Worksheet for Most People provided in the instruction booklet to calculate your North Carolina itemized deductions. If you were required to complete the Itemized Deduction Worksheet in the instructions for Federal Form 1040 because your federal adjusted gross income exceeded an applicable threshold, complete the Itemized Deduction Worksheet for People Whose Federal Itemized Deductions are Limited Based on Income provided in the instruction booklet to determine your North Carolina itemized deductions. Otherwise, your North Carolina itemized deductions are the same as your federal itemized deductions.