Credit For Children
If you are entitled to claim a child tax credit on your federal return, you may claim a child tax credit of $100 on the State return for that same dependent child if your federal adjusted gross income (Form 1040, Line 37; or Form 1040A, line 21) is less than the amounts for your filing status in the table below:
The credit for children can be claimed only for a child who was under 17 years of age on the last day of the year.
Complete Parts 3 and 4 of Form D-400TC to determine the tax credit. The tax credit cannot exceed your North Carolina income tax.
If you are a nonresident or a part-year resident, you must multiply the credit by the decimal amount shown on line 16 of Form D-400. Under certain circumstances, the decimal amount on line 16 can exceed one hundred percent. In such cases, the credit is limited to $100 per qualifying child.
Be sure to include Form D-400TC (Individual Tax Credits schedule) when filing your North Carolina return.
If you are a same-sex couple, see Frequently Asked Questions for Same-Sex Marriage (Question 11).
New for tax years beginning on or after January 1, 2014:
- Amounts are increased from $100 to $125 per qualifying child for some taxpayers (as shown below)
- A taxpayer who is allowed a federal child tax credit under section 24 of the Code is allowed a tax credit for each dependent child for whom they were allowed a federal credit unless the taxpayer’s AGI exceeds the applicable threshold
- The amount of NC credit allowed is based on taxpayer’s filing status and adjusted gross income, as calculated under the Code