Interest Income from U.S. Obligations
You may take a deduction on your North Carolina individual income tax return
for interest you received from direct United States obligations
to the extent this interest has already been included in your federal
adjusted gross income. The State does not tax this income; therefore, this
deduction will reduce your North Carolina taxable income.
You may take a deduction for interest received from notes, bonds,
and other direct United States obligations such as savings bonds
and treasury notes and bills.
You cannot deduct interest earned from federally backed or guaranteed obligations
such as Sallie Maes, Ginnie Maes, Fannie Maes, and Freddie Macs. These do not
qualify for this deduction since they are not binding promises to pay
by the United States government. You cannot deduct distributions from United
States obligations representing gain from the sale or other disposition of the
securities, or interest paid in connection with repurchase agreements issued
by banks and savings and loan associations. This deduction does not apply
to any portion of a distribution from an Individual Retirement Account (IRA).
Enter your deduction amount on line 39 of Form D-400. This amount
will become part of the total line 9 amount on page 1 of your Form
Last modified on:
01/03/13 03:39:48 PM.