North Carolina Form Help
The following information has been provided to assist in the preparation of North Carolina returns.
North Carolina returns are due on day 15 of the fourth month following the close of its first income year of twelve months or less. Payments may be made by going to www.dornc.com and click on electronic services.
Every corporation doing business in North Carolina and every inactive corporation chartered or domesticated here must file an annual franchise and income tax return using the name reflected on the corporate charter if incorporated in this North Carolina, or on the certificate of authority if incorporated outside of North Carolina. A franchise tax is imposed on corporations for the privilege of doing business in North Carolina even though the activities are exempt from income tax under P.L. 86 272. For a corporation that is subject to both income tax and franchise tax, its apportionment factor is the same for both taxes. For a corporation that is subject to franchise tax but not income tax, its apportionment factor is the same factor that would be used if its activities that are protected by P.L. 86 272 were subject to income tax in North Carolina.
North Carolina franchise tax is calculated based on the information provided on the Balance Sheet in the Financial Statements.
North Carolina income tax is calculated starting with Schedule G or federal net income less special deductions. For multi state returns income is apportioned to North Carolina and reduced by deductions. The annual reporting fee is added to the calculated income tax.
Schedule C is calculated using entries from the Balance Sheet and Income Statement. The apportioned amount is used to calculate franchise tax.
Schedule D is calculated using entries from the Balance Sheet and direct entries to the schedule.
This section must be completed for the return to be considered complete.
Schedule G is information pulled from the federal 1120, page 1.
Adjustments, including additions and subtractions, to federal taxable income are pulled from the federal 1120, income statement, and by using direct entries. Override values if needed.
Contributions are pulled from the federal 1120. North Carolina contributions are direct entry. Contributions are limited to 5 percent of income before taxable contributions.
Balance sheet entries are made on the Financials – Balance Sheet worksheet.
Schedule M1 must be included if not including the federal return with the filing. Amounts will be pulled from the federal schedule M1 and direct entries are required for the reconciliation.
Schedule M2 must be included if not including the federal return and assets equal or exceed $10 million. The values will be pulled form the federal M2.
Nonapportionable income includes rents, royalties, dividends, and interest pulled from the balance sheet.
Select the Part to calculate by putting an X in the corresponding box. Apportionment is calculated using the State Apportionment and Allocation worksheet.
Form CD 425 is a summary of tax credits for Corporations and S Corporations. Values will be pulled from credit forms and in some cases is calculated using direct entry. Total credits will flow to Schedule B.
Form NC 478B is a summary of tax credits for Corporations and S Corporations. Values will be pulled from credit forms and in some cases is calculated using direct entry. Credits for both income and franchise tax will be calculated. Total credits will flow to Schedule B on the main form.
Enter the credit amount in Part 3. Enter the amount of credit taken for franchise tax if applicable. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Enter the number of office employees and credit amount. Enter the amount of credit taken for franchise tax if applicable. Enter the amount of credits taken and carryforwards to calculate future credits.
Enter the credit amount in Part 3. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Select the type of research expense. Enter the address and choose the county. The wage standard will be computed for the selected county. Enter the credit amount on the first line of the applicable section. Enter the amount of the credit taken for franchise tax and the income tax credit will be calculated.
Enter the county to determine the tier. Enter the number of employees in 2012 and 2013 to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax credit will be calculated.
Enter the county to determine the tier. Enter the amount of property purchased or leased in North Carolina to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax credit will be calculated. Credit must be taken in 2013.
Enter the county and cost of property purchased or leased to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax will be calculated. Credits taken and carryforwards will need to be entered to calculate credit in the future.
If credit was received from a pass through or successor then fill out the supporting information.
Complete, sign, and mail this form to assign power of attorney for tax matters and any other act related to the business.
The annual report is due the fifteenth day of the fourth month following year end. Complete the information, sign, and mail the report. It must be signed by an officer listed on the form.
Complete and mail the extension by the due date of the return. Extension is granted for up to 6 months.
Complete and mail the extension by the due date of the return. Extension is granted for up to 6 months.
Enter estimated taxable federal income, additions, and deductions. Estimated tax and due dates will be computed. Vouchers will be provided for payment of estimated tax.
Every S corporation doing business in North Carolina and every inactive S corporation chartered or domesticated here must file an annual franchise and income tax return using the name reflected on the corporate charter if incorporated in this North Carolina, or on the certificate of authority if incorporated outside of North Carolina. A franchise tax is imposed on S corporations for the privilege of doing business in North Carolina even though the activities are exempt from income tax under P.L. 86 272. For an S corporation that is subject to both income tax and franchise tax, its apportionment factor is the same for both taxes. For a S corporation that is subject to franchise tax but not income tax, its apportionment factor is the same factor that would be used if its activities that are protected by P.L. 86 272 were subject to income tax in North Carolina.
North Carolina franchise tax is calculated based on the information provided on the Balance Sheet in the Financial Statements.
North Carolina income tax is calculated starting with Schedule H or federal net income less special deductions. For multi state returns income is apportioned to North Carolina and reduced by deductions. The annual reporting fee is added to the calculated income tax.
Schedule C is calculated using entries from the Balance Sheet and Income Statement. The apportioned amount is used to calculate franchise tax.
Schedule D is calculated using entries from the Balance Sheet and direct entries to the schedule.
This section must be completed for the return to be considered complete.
Schedule G is information pulled from the federal 1120S, page 1.
Schedule H is information pulled from the federal 1120S, page 1.
Adjustments, including additions and subtractions, to federal taxable income are pulled from the federal 1120S, income statement, and by using direct entries. Override values if needed.
Each shareholder’s pro rata share of income, additions, and deductions are calculated by ownership percentage entered on the K-1 worksheet.
Balance sheet entries are made on the Financials – Balance Sheet worksheet.
Schedule M1 must be included if not including the federal return with the filing. Amounts will be pulled from the federal schedule M1.
North Carolina AAA requires input for beginning balance and adjustments. Totals will be calculated.
Nonapportionable income includes rents, royalties, dividends, and interest pulled from the balance sheet.
Select the Part to calculate by putting an X in the corresponding box. Apportionment is calculated using the State Apportionment and Allocation worksheet.
Partner’s share of income, additions, and deductions are calculated using the ownership percentage from the federal K1.
Form CD 425 is a summary of tax credits for Corporations and S Corporations. Values will be pulled from credit forms and in some cases is calculated using direct entry. Total credits will flow to Schedule B.
Form NC 478B is a summary of tax credits for Corporations and S Corporations. Values will be pulled from credit forms and in some cases is calculated using direct entry. Credits for both income and franchise tax will be calculated. Total credits will flow to Schedule B on the main form.
Enter the credit amount in Part 3. Enter the amount of credit taken for franchise tax if applicable. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Enter the number of office employees and credit amount. Enter the amount of credit taken for franchise tax if applicable. Enter the amount of credits taken and carryforwards to calculate future credits.
Enter the credit amount in Part 3. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Select the type of research expense. Enter the address and choose the county. The wage standard will be computed for the selected county. Enter the credit amount on the first line of the applicable section. Enter the amount of the credit taken for franchise tax and the income tax credit will be calculated.
Enter the county to determine the tier. Enter the number of employees in 2012 and 2013 to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax credit will be calculated.
Enter the county to determine the tier. Enter the amount of property purchased or leased in North Carolina to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax credit will be calculated. Credit must be taken in 2013.
Enter the county and cost of property purchased or leased to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax will be calculated. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Include this form when filing NC 478 J, K, or L. Enter the information for the establishment when the credit was generated. The number of establishments and associated fee will be calculated.
If credit was received from a pass-through or successor then fill out the supporting information.
Complete, sign, and mail this form to assign power of attorney for tax matters and any other act related to the business.
The annual report is due the fifteenth day of the fourth month following year end. Complete the information, sign, and mail the report. It must be signed by an officer listed on the form.
Complete and mail the extension by the due date of the return. Extension is granted for up to 6 months.
Complete and mail the extension by the due date of the return. Extension is granted for up to 6 months.
Enter estimated taxable federal income, additions, and deductions. Estimated tax and due dates will be computed. Vouchers will be provided for payment of estimated tax.
Every partnership doing business in North Carolina must file a partnership income tax return, Form D 403, for the taxable year if a federal partnership return was required to be filed. (Exception: A partnership whose only activity is as an investment partnership is not considered to be doing business in North Carolina. Consequently, an investment partnership is not required to file an income tax return in North Carolina nor pay income tax to North Carolina on behalf of its nonresident partners.) A limited liability company classified as a partnership for federal income tax purposes is also classified as a partnership for State income tax purposes and is required to file a partnership income tax return if a federal partnership return is required to be filed. A partnership which elects to be taxed as a corporation for federal income tax purposes will also be taxed as a corporation for North Carolina income tax purposes. The partnership must file a corporation income tax return, Form CD 405 in lieu of filing Form D 403. The tax return is due the fifteenth day of the fourth month following the year end.
North Carolina income and net tax due are calculated using the federal 1065 and North Carolina additions and deductions.
Apportionment is calculated using the State Apportionment and Allocation worksheet. North Carolina portion of income will be designated by enter ‘NC’ in the State field. The apportionment percentage will be calculated by dividing North Carolina totals by totals everywhere.
Partner information and share percentage is pulled from the federal K1. Income, adjustments, and share of tax are calculated from information on the North Carolina partnership return.
Taxable income is calculated using values from the federal K1.
Tax due is calculated by multiplying taxable income by the income tax rate. The partnership is required to pay nonresident partner’s tax.
Adjustments to income are pulled from the Income Statement worksheet. Additional entries will be made directly on the form.
Partner’s share of income, additions, and deductions are calculated using the partner’s share percentage from the federal K1.
Form D 406TC is a summary of tax credits for partnership tax returns. Values will be pulled from credit forms and in some cases is calculated using direct entry. Total credits will flow to NC 478, Part 3.
Form NC 478B is a summary of tax credits for Corporations and S Corporations. Values will be pulled from credit forms and in some cases is calculated using direct entry. Credits for both income and franchise tax will be calculated. Total credits will flow to Schedule B on the main form.
Enter the credit amount in Part 3. Enter the amount of credit taken for franchise tax if applicable. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Enter the number of office employees and credit amount. Enter the amount of credit taken for franchise tax if applicable. Enter the amount of credits taken and carryforwards to calculate future credits.
Enter the credit amount in Part 3. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Select the type of research expense. Enter the address and choose the county. The wage standard will be computed for the selected county. Enter the credit amount on the first line of the applicable section. Enter the amount of the credit taken for franchise tax and the income tax credit will be calculated.
Enter the county to determine the tier. Enter the number of employees in 2013 and 2014 to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax credit will be calculated.
Enter the county to determine the tier. Enter the amount of property purchased or leased in North Carolina to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax credit will be calculated. Credit must be taken in 2014.
Enter the county and cost of property purchased or leased to determine the amount of credit. Enter the amount of credit taken for franchise tax and the income tax will be calculated. Credits taken and carryforwards will need to be entered to calculate credit in the future.
Include this form when filing NC 478 J, K, or L. Enter the information for the establishment when the credit was generated. The number of establishments and associated fee will be calculated.
If credit was received from a pass-through or successor then fill out the supporting information.
Complete, sign, and mail this form to assign power of attorney for tax matters and any other act related to the business.
Complete and mail the extension by the due date of the return. Extension is granted for up to 6 months.