Estimated Income Tax

You are required to make estimated tax payments if your North Carolina income tax liability, after credits and tax withheld, is $1,000 or more. Use form NC-40 to make estimated tax payments. Your estimated tax is the amount of income tax you expect to owe, minus the tax you expect to have withheld plus any tax credits. Estimate your tax carefully to avoid having to pay a large balance and to avoid paying interest for underpayment of estimated income tax.

For calendar year filers, estimated payments are due April 15, June 15, September 15 of the taxable year and January 15 of the following year. If you file your income tax return by January 31 of the following year and pay your entire balance, you do not have to make the January 15 payment.

If you do not make the required estimated payments you will owe interest for underpayment of estimated tax. Use Form D-422, Underpayment of Estimated Tax by Individuals, to compute the interest. Interest for underpayment of estimated tax does not apply if you had no tax liability for the previous year.

If you are a farmer or fisherman and you file your return and pay the total tax on or before March 1, you do not have to make estimated payments.

Send your estimated tax payments with form NC-40. These forms can be obtained by calling the North Carolina Department of Revenue forms number 1-877-252-3052, or go to our Order Forms page.