New Carolina state tax basis is the Federal Adjusted Gross Income (AGI).
Interest/Divident Income: Interest and Divident income from U.S. government bonds are exempt from State Taxes.
Rent Income: Same as federal
Capital Gain: Same as federal plus exemption for gains from certain North carolina obligations issued before july1 1995
Unemployment Income: Same as federal
Social Security Benefits: All social security income is exempt from state taxes.
State Bond Interest: Taxable except North Carolina obligations
Health Savings Accounts: Same as federal
Disability: Same as federal
Lottery: Same as federal
Federal Income Tax: Not deductible
Other Taxes: Up to $35,000 in severance pay is deductible if received as a result of permanent involuntary termination of employment through no-fault of the employee. Deduction for federal Hope or Lifetime Learning credits claimed in lieu of higher education expense deduction.*In addition, certain retirement benefits from public defined benefit plans are exempt.
Check other state tax links below.