Refundable Earned Income Tax Credit

You are entitled to a refundable earned income tax credit if you claimed the earned income tax credit under section 32 of the Internal Revenue Code. For tax year 2013, the credit is 4.5% (5% for tax years 2008 – 2012 and 3.5% for tax year 2008) of the amount of the earned income tax credit you qualified for on the federal return. If the credit exceeds the tax liability reduced by the sum of all credits allowable, the excess is refunded to you.

Section 3507 of the Internal Revenue Code, Advanced Payment of Earned Income Credit, does not apply to the State earned income tax credit.

If you are a part-year resident or nonresident, you are allowed a prorated tax credit based on the percentage of your total income that is taxable to North Carolina.

If you are a same-sex couple, see Frequently Asked Questions for Same-Sex Marriage (Question 13).

The credit expires for taxable years beginning on or after January 1, 2014.

Click here to learn how you may be able to qualify for the state EITC.