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:

$100,000 .......... for married filing jointly
$80,000 .......... for head of household
$60,000 .......... for single
$50,000 .......... for married filing separately

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.

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
Filing Status
Federal Adjusted Gross Income
Credit Amount per Qualifying Child
Married Filing Jointly or Qualifying Widow(er) Up to $40,000
Over $40,000 and up to $100,000
Over $100,000
$125
$100
$0
Head of Household Up to $32,000
Over $32,000 and up to $80,000
Over $80,000
$125
$100
$0
Single or Married Filing Separately Up to $20,000
Over $20,000 and up to $50,000
Over $50,000
$125
$100
$0