NC State Income Tax (home owners insurance, credit, new)

[Songbird42]

I know that NC has an income tax, and I was thinking about this long and hard.....say you have a federal pension and you live in NC but your checking acct is in NY........the money technically is in NY and you use a NC checking acct to write out checks etc. Would you still have to file NC state income tax? I know its a silly question but how would NC know where the money was coming from? This is one of those thoughts I get when I can't sleep at night.

[michymm]

If you live in NC you must file a NC State income tax, it is your primary address - just because funds are in one state, you still owe the state where you live as well as the fed govt

[Songbird42]

OK so I have to fill with the state.......anyone know the rate I'm taxed? Or is it so much for $10,000, higher for $20,000 and so on and so forth. Say we have $40,000 pension, I read that $4,000 is exempt.....leaving $36,000.

Seems like the state likes to tax you to death, not only do they want part of your pension, they want money so you can use the roads and tax your cars.

I'm just trying to figure out if its worth the trouble to leave Fl. and move where all I'll do is pay, pay, pay.

I'd appreciate some input on this subject, thanks.

[SunnyKayak]

North Carolina collects income taxes from its residents utilizing four tax brackets.

For single taxpayers:
-- 6% on the first $12,750 of taxable income
-- 7% on taxable income between $12,751 and $60,000
-- 7.75% on taxable income between $60,001 and $120,000
-- 8.25% on taxable income of $120,001 and above.

For married persons filing joint returns:
-- 6% on the first $21,250 of taxable income
-- 7% on taxable income between $21,251 and $100,000
-- 7.75% on taxable income between $100,001 and $200,000
-- 8.25% on taxable income of $200,001 and above.

I tried to find info on web specfic to pension and to many places click here to go here to go there. Hopefully some other floridians can assist you in what they have experienced.

[ddlove01]

Here's a naive question (please excuse me, I live in FL and have never paid state taxes). I tried playing around with the NC 400 (Individual Income Tax form) and brought over my federal income and tried to do a mock tax return and was very confused...

Doesn't NC offer credits or exemptions for children? Other states with state tax do. Is there a way to have your employer take out less state tax from your paycheck? I really don't know the rules. I tried searching on the nc.gov website, but this is more of a specific question.

I have two kids (can claim dependent exemption and child tax credit on the fed), married and would be in the NC 7% tax bracket. Will I always end up with tax due and not a refund when tax time comes around?

[SunnyKayak]

Originally Posted by ddlove01

Here's a naive question (please excuse me, I live in FL and have never paid state taxes). I tried playing around with the NC 400 (Individual Income Tax form) and brought over my federal income and tried to do a mock tax return and was very confused...

Doesn't NC offer credits or exemptions for children? Other states with state tax do. Is there a way to have your employer take out less state tax from your paycheck? I really don't know the rules. I tried searching on the nc.gov website, but this is more of a specific question.

I have two kids (can claim dependent exemption and child tax credit on the fed), married and would be in the NC 7% tax bracket. Will I always end up with tax due and not a refund when tax time comes around?

Lets put it this way THANK GOD FOR TURBO TAX

That form is so greek and all the state need to do is do it like turbo tax does answer yes for this and no for that lol

BTW your questions are legitimate for any newcomer or long term resident.

I paid turbo tax 15 dollars so I could get my 2 dollar refund but hey it would have taken me hours and several advils so it was worth it lol.

I know it confusing since your coming from a state that takes out higher personal property taxes I really hope some members who are familar will respond I would give them a few days I think this site is light on traffic due to the summer .

I bet tax preparers are going to love all the newcomers here.
Yes there is dependent deductions and yes you can control amount of employer deduction you fill out a w2 or w4 form I forget which (employer will provide that for you). I didnt seem to qualify for any of the state deductions but my federal deductions was a bunch. Reminds me I need to do a chairiable donation soon.

Here is link to what the various claims and deductions
Individual Tax Forms and Publications

Here is copy of what the actual form looks like maybe this will help answer some of your questions as well
http://www.dor.state.nc.us/downloads...TC_webfill.pdf

[ddlove01]

Hi Sunny!

Thanks for the info, especially the W4 stuff, I wasn't sure if you could raise/lower the amount taken out, that's good info.

Here's the funny thing about me...
I am H&R block certified (Personal Income Tax on the federal level)
I am a software developer for a competitor of TurboTax so I know the NC400 very well, but this state's tax laws are very greek to me. Other state forms are a little more straight forward. I guess I am going to have to do a little bit of research. When we move to NC, we will be working out of our home for the same company we work for in FL, so we may have some other deductible expenses we can use to our benefit.

You can get very spoiled in a state with no state income tax, so many less forms to file! A great thing about moving to NC are the lower home owners insurance and lower property taxes. We got a quote for HOI for $460. We currently pay almost $1800 for less coverage. Our property taxes should come in around $1600. That's less than we pay now.

I cannot wait to move to NC. I have dreams about our neighborhood and new home almost every night. I can't wait to arrive. Hopefully our house will sell soon so we can make our way up there.

Also, congrats on becoming a moderator. You have always been there and have been helpful to others on the board.

-Dawn-

[steve54]

I live in NC and pension is paid in the UK in Pounds Sterling . I still have to file NC State tax and make payments

[Songbird42]

Thank you Sunny, you always come through with a answer, also congrats
on becoming a moderator, your name fits you well......someone who lights up the forums..again thank you, things look better when you have some figures to work with.

[jroede01]

We presently live in FL and we are planning on moving to NC, due to the overall quality of life of NC. Our income is over 200k, with two kids. I have done all the calculations and have come to the conclusion; I would pay much more taxes in NC then in FL. That includes both State Income tax and property taxes, combined.

Am I missing something is there a financial reason the a high earner should leave FL for NC, outside of quality of life?

I really want to move there but those taxes, ouch!!!