North Carolina Standard Deduction or North Carolina Itemized Deductions
For tax years beginning on or after January 1, 2012, the starting point for determining North Carolina taxable income is federal adjusted gross income. You may deduct the North Carolina standard deduction or itemized deductions using the itemized deduction worksheet on Page 9, of the North Carolina individual income tax instructions for Form D-400. If you itemized on your federal return, you may either itemize or claim the standard deduction. If you did not itemize your deductions on your federal return, you may take the standard deduction on your North Carolina return. However, if you are (1) married filing a separate return for federal income tax purposes and your spouse itemizes deductions, or (2) a nonresident alien, or (3) filing a short-year return because of a change in your accounting period, you are not entitled to the standard deduction and should enter zero (0) on line 11 of Form D-400. Note: A short-year return does not relate to a taxpayer who files a return as a part-year resident.
Select one of the next two options for further instructions:
- North Carolina Standard Deduction for individuals claiming the standard deduction on their federal return
- North Carolina Itemized Deductions for individuals claiming itemized deductions on their federal return