Tuesday, March 19, 2024

How To Pay State Taxes Nc

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Franchise & Income Tax

You could still pay interest on your taxes in North Carolina

A franchise tax is imposed on corporations for the privilege of doing business in North Carolina. This tax is due annually as long as the corporation remains incorporated, domesticated or continues to do business in the state. For questions concerning franchise and income tax obligations, visit the North Carolina Department of Revenues Corporate Taxes page or call 252-3052.

Student Loan Debt Relief Remains On Hold But Could Forgiveness Wipe Out Your Tax Refund

If passed, borrowers in several states may have to pay taxes on forgiven student loan balances.

Courtney Johnston

Editor

Courtney Johnston is an editor for CNET Money, where she manages the team’s editorial calendar, and focuses on taxes, student debt and loans. Passionate about financial literacy and inclusion, she has prior experience as a freelance journalist covering investing, policy and real estate. A New Jersey native, she currently resides in Indianapolis, but continues to pine for East Coast pizza and bagels.

Right now, President Joe Biden’s widespread federal student loan forgiveness remains on hold, pending a ruling from the federal appeals court. If debt relief does go through, you may end up with a tax bill when filing your 2022 tax returns.

Although the federal government is not taxing forgiven student loans through 2025, thanks to a provision tucked into the $1.9 trillion American Rescue Act COVID relief package, depending on where you live, you may owe state and county taxes.

Potential Negative Consequences From Obtaining A Payment Plan

If you obtain an installment payment plan with the Department of Revenue and default on any of the terms, the Department must take legal action to force collection of the tax immediately.

Forced collection actions include:

  • Garnishment and Attachment An order that requires that money be withheld from a taxpayers bank accounts, wages, or other intangible property.
  • Certificate of Tax Liability A CTL places a judgment on real or personal property that is held by a taxpayer. Moreover, a CTL is public information and must be resolved to obtain a clear title to a property.
  • Jeopardy Assessment The NC Department of Revenue may immediately assess and collect any tax the Department finds in jeopardy. Furthermore, when making a jeopardy collection, the Department may use any collection remedy in NC General Statutes § 105-242.
  • Tax Warrant A tax warrant is a request issued to a Sheriff to seize and sell any personal property owned by a taxpayer who has failed to pay taxes, penalties, interest, or fees that have been assessed by the NC Department of Revenue.

When in doubt, it is generally a good idea to work with a licensed tax professional that has resolved or has experience fixing tax problems with North Carolina’s DOR, click the link or start your search below to see top-rated tax professionals. Sometimes other options, like an Offer in Compromise can be a better course of action if a taxpayer qualifies.

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Choosing Income Tax Withholding Preferences

To change your withholding, complete the following steps:

  • Login to ORBIT. If you have not used ORBIT before, you will need to register by clicking on the Register button on the same page. To complete the registration, you need to supply your Social Security number, birth date, and the net pay from your most recent benefit payment.
  • Once logged in, click on the tab Maintain Tax Withholding Election tile on the Retiree Welcome screen .
  • Enter the changes you would like to make and click Save.
  • If you are in the process of applying for benefits, and using the Retirement application, you will be making your tax withholding elections as a part of the process.
  • The Different Types Of Taxes You Could Be Paying

    How to File and Pay Sales Tax in North Carolina

    Some states have a flat tax rate on incomes, also known as the fair tax. In Pennsylvania, the flat tax rate in 2020 was 3.07%, meaning that someone who earns $100,000 would only pay $3,070 in state income tax. There are only 8 states that have a flat tax rate in income, respectively Michigan, Utah, Indiana, Colorado, Illinois, Pennsylvania, North Carolina, and Massachusetts.

    Other states have no income tax, but that doesnt mean there are no taxes paid to the state. For example, these states may still have to deal with other taxes, including gasoline tax, property taxes, cigarette tax, and sales tax. The seven states with no income tax are Florida, South Dakota, Texas, Wyoming, Washington, Nevada, and Alaska.

    There are also some graduated tax rates that the remaining 36 states and the District of Columbia use. This framework is similar to the one used by the federal government. Under this type of tax, a person would have their income taxed in different brackets at different rates, which increase when the annual income also grows. However, there are fewer brackets compared to the federal tax code, and also lower tax rates.

    State income tax can also be individual or corporate.

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    How To Pay Your Taxes

    Listed below are the ways to pay your Haywood County taxes:

    1. Pay Online You may pay online with a Credit Card, Debit Card, or Check

    2. Pay by Phone You may pay by phone by dialing 1-877-729-8290. You must have your bill # and account # when calling.

    3. Pay by Mail You may mail a check or money order to the address on your tax bill.

    4. Payment Dropbox You may pay with check or money order by placing it into the payment dropbox in front of the Historic Courthouse located at 215 North Main Street in Waynesville. NO CASH SHOULD BE LEFT IN DROPBOX.

    5. Pay with Cash You may make cash payments in the Tax Collections office. Masks and temperature screenings are required.

    How Is The Jackpot Estimate Calculated

    To understand the discrepancy between the lump sum and the annuity, its worth knowing what exactly goes into that estimated jackpot.

    The amount of the advertised Grand Prize estimate isnt as simple as taking a percentage of total sales. The Multi-State Lottery Association says it involves many factors. The biggest two, however, are sales and what they refer to as the annuity factor.

    The annuity factor is made up of interest rates for securities purchased to fund prize payments, the Powerball website says. The higher the interest rates, the higher the advertised Grand Prize. You might not realize that an economic reality like interest rates impact even the Powerball jackpot, but they do!

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    Can I Use A Different Filing Status On My State Return

    North Carolina requires that you use the same filing status as you used on your federal return. An exception for married couples is is one spouse is a resident of North Carolina and the other is a nonresident , you may use the filing status for Married Filing Separately.

    If you filed jointly on the Federal return and both spouses had NC taxable income, a joint NC return is required.

    If you file state returns but filed a married filing joint federal return, e-file the federal return and wait for the return to be accepted. Then, complete a federal return using the married filing separate status. Do not file the second federal return. Attach copies of both the married filing joint federal return and the married filing separate federal return to the printed North Carolina return. You cannot e-file the North Carolina return.

    Print the return by going to Summary/Print > View/Print return. Sign and mail to the State along with your supporting documents.

    If you choose to file the N.C. tax return as married filing separately, you must complete either a federal tax return as married filing separately reporting only your income and deductions or a schedule showing the computation of your separate income and deductions and attach it to your N.C. tax return.

    For more information:

    American Opportunity Tax Credit

    Why your NC state tax return may take longer: 2 Wants to Know

    The American Opportunity Tax Credit is available for first-time college students during their first four years of higher education. It allows you to claim 100% of the first $2,000 of qualifying education expenses, then 25% on the next $2,000 spent for a total of up to $2,500. If you’re a parent, you can claim the AOTC per eligible student in your household, as long as they’re listed as a dependent.

    To claim the full credit in 2021, your MAGI must have been $80,000 or less . If your MAGI was between $80,000 and $90,000 , you might have qualified for a partial credit.

    The AOTC is a refundable credit, which means if it lowers your income tax to less than zero, you might be able to get a refund on your taxes or increase your existing tax refund.

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    How Can I Obtain A Receipt

    MyDMV is the N.C. Division of Motor Vehicles online portal that lets you view and manage details about your driver license and vehicle registration, view and print motor vehicle taxes due/paid and conveniently complete NCDMV services anytime and anywhere without ever having to wait in a line. To access this feature, click here: MyDMV.

    Personal Online Banking Bill Pay

    • Pay a tax bill using your financial institutions bill pay service.
    • Allow additional time for processing, we recommend scheduling your payment to be sent to us by your financial institution at least 5 business days prior to the actual due date on the tax bill.
    • Be certain to verify the property tax bill number is submitted with your payment to ensure proper credit. Delayed posting may occur if the incorrect tax number is provided. The bill number is printed in color on your bill.
    • If making an advance payment, please have your bank indicate Prepayment on the remittance.
    • Make payable and remit to: Orange County Tax Office P.O. Box 8181, Hillsborough, NC 27278.

    PAY TAXES BY MONTHLY BANK DRAFT

    Orange County Tax Office offers a Bank Draft Program that will allow you to pay 2022 real and personal property taxes over a 10-month period. This will relieve you of mailing monthly payments, and it will be a convenient way to pay taxes.

    • You may choose to have payments drafted on either the 5th or the 20th of the month. Drafts on the 5th will begin in February and finish in November drafts on the 20th will begin in January and finish in October.
    • Applications will be accepted by mail, in person or by email. Please submit a new application for each year that you choose to participate.
    • Tax bills for registered motor vehicles are not eligible for this program.

    Please be advised that payments are non-refundable.

    What to do:

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    These States Are Not Taxing Forgiven School Loans

    There are 28 states, plus Washington DC, that either have no income tax or automatically conform with federal law and will not tax this canceled debt, according to Mark Kantrowitz at The College Investor. These include:

    Other states that do not automatically conform with the federal provision, like Hawaii, have recently announced that forgiven student loan debt will not be taxed at the state level. Spokespeople in Virginia, Idaho, New York, West Virginia, Pennsylvania and Kentucky also told the Associated Press their states would not tax borrowers on forgiven student debt.

    Although California technically could tax forgiven student debt, legislators have stated residents will not be taxed on forgiven student loans. Speaker of the California State Assembly, Anthony Rendon, confirmed in a tweet that the state is ready to take action to prevent Californians from paying taxes on forgiven debt — and will do so once the details of the federal student loan forgiveness program are finalized.

    We’re not going to leave California’s borrowers in the lurch. See my statement on federal student debt relief with @SenToniAtkins here.

    Anthony Rendon

    At this time it’s not clear what will happen in states not mentioned, but we’ll keep you updated as the situation evolves.

    What About The Taxes

    State budget agreement doubles down once more on regressive tax ...

    Lets say you win and decide that $929.1 million lump sum is plenty, opting for the one-time payment. Then, youre immediately going to be saying goodbye to about a third of that.

    The lottery automatically withholds 24% for federal taxes on all prizes over $5,000.

    And North Carolina taxes any lottery winnings over $600 as income. For 2022, the individual income tax rate is 4.99%, which means the lottery would withhold about $46,362,090. Keep in mind that different states tax winnings at different rates.

    That would leave you with $659,753,910. But come tax time, you will likely face a hefty charge. Just because the state lottery withholds 24% for federal taxes doesnt mean thats all you owe. A win of $929.1 million will push you well over the highest tax bracket. The exact amount youll owe will depend on the rest of your income.

    Lets say your individual income is zero, and youre not married. You can check out the chart below from NerdWallet that shows you what the current federal income tax brackets for 2022.

    Dont worry, we did the math for you! All in all, you would likely owe $343,835,851.50 in taxes. Assuming the state already withheld that 24% , you would still need to pay more than $120.9 million in taxes when you file.

    And thats if your income was zero. If you make $50,000 a year, you would owe an additional $18,500 on top of that.

    In terms of federal taxes, the 2023 federal income tax rates may be a little kinder than 2022.

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    Occupational Safety And Health Act Of North Carolina

    The North Carolina Department of Labor administers and implements the Occupational Safety and Health Act of North Carolina. OSHA standards protect workers from unsafe and unhealthy working conditions. For information regarding OSHA requirements, contact the North Carolina Department of Labors Occupational Safety and Health Division or call 807-2900.

    North Carolina Income Taxes

    North Carolina moved to a flat income tax beginning with tax year 2014. For tax year 2021, all taxpayers pay a flat rate of 5.25%. That rate applies to taxable income, which is income minus all qualifying deductions and exemptions, as well as any contributions to a retirement plan like a 401 or an IRA.

    In North Carolina, taxpayers can claim itemized deductions for charitable contributions, mortgage interest and property taxes. The deductions for the latter two categories cannot exceed $20,000. Most other deductions that were previously available in North Carolina, including the Net Business Income deduction and the College Savings Program deduction, are no longer available as of 2014.

    Taxpayers who dont itemize their deductions can claim North Carolinas standard deduction. The standard deduction for the 2021 tax year is $10,750 for single filers, $21,500 for joint filers and $16,125 for heads of household. However, there is no personal exemption in North Carolina for filers, spouses or dependents. To file your federal tax return, you can look into tax preparation software or hire a professional accountant.

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    How Do I Claim Military Retirement On My Taxes

    A Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 5a and 5b of Form 1040 or Form 1040-SR.

    Renew Registration And Pay Property Tax Online

    Why NC will tax unemployment when Feds are not

    1. Visit myNCDMV and or download the app for iOS or Android and click Continue to myNCDMV Services.

    2. Create an account using your email address, Apple, Facebook or Google credentials, or Continue as a Guest .

    8. Enter your contact information. Then, click Submit.

    9. Review your Vehicle Renewal Summary and click Add item to cart if everything looks good.

    10. Click Go to cart if you dont need to add another item. Click Ill add something else if you need to renew another vehicle or need to make another purchase online through myNCDMV.

    11. Enter your email address into the Send Receipt To box if youre logged in a guest. If you have an account, your receipt is sent to the email address that you use to log in to myNCDMV.

    12. After clicking Go to cart, click Choose a Payment Method and enter a or link to a bank account.

    Note: If you already have a card or bank account linked, it will automatically appear here. Click on the payment method to change or add a new payment method.

    13. Click Pay $.to finalize and submit your order.

    Note: You will receive a payment receipt in your email and if signed in, you can also see it in the Receipts tab of your myNCDMVProfile .

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    Is Military Retirement Pay Exempt From State Taxes

    1. California California offers retired military members no way to escape its high tax rates. The Golden State taxes 100% of a residents income from military pensions, along with private, local, state, and other federal pensions.

    Does military have to file state taxes?

    Active-duty service members file state income taxes in their state of legal residence. Military service members are not required to change their legal residence when they move to a new state solely because of military orders they may maintain their legal residence in a state where they have previously established it.

    What is my NC State ID number?

    However, if youre looking for your drivers license identification number, its the 12-digit number at the top of your drivers license, labeled as Drivers License Number .

    How do I find my NC ID number?

    How do I get my NCID? You should contact your agencys NCID administrator. If you do not know who your NCID administrator is, please contact the ITS Service Desk at 919-754-6000 or 1-800-722-3946.

    What is a military EIN number?

    What is the DoD ID Number? The DoD ID Number is a unique number assigned to all U.S Department of Defense Civilian, U.S. Military, and DoD Contract personnel with a Common Access Card . For these personnel, their DoD ID number is synonymous with their Electronic Data Interchange Personnel Identifier .

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