17 NCAC 06C .0124. ADDITIONAL WITHHOLDING ALLOWANCES

(a)  Deductions. -- Additional withholding allowances may be claimed by taxpayers expecting to have allowable itemized deductions exceeding the standard deduction or allowable adjustments to income.  For most taxpayers, one additional allowance may be claimed for each two thousand five hundred dollars ($2,500) that the itemized deductions are expected to exceed the standard deduction and for each two thousand five hundred dollars ($2,500) of adjustments reducing income.  For taxpayers whose annual income equals or exceeds the applicable threshold for their filing status, an additional allowance may be claimed for each two thousand dollars ($2,000) that their itemized deductions are expected to exceed the standard deduction and for each two thousand dollars ($2,000) of adjustments reducing income.  The thresholds are:

Filing Status                                          Applicable Threshold

Head of Household                                            $80,000

Married                                                                  $50,000

Single                                                                     $60,000

(b)  Tax Credits. -- A taxpayer who will be entitled to a tax credit may claim one additional allowance for each one hundred seventy-five dollars ($175.00) of tax credit, unless the taxpayer's annual income equals or exceeds the applicable threshold set out in Paragraph (b) of this Rule for the taxpayer's filing status.  In that circumstance, the taxpayer may claim an additional allowance of only one hundred forty dollars ($140.00) for each tax credit.

 

History Note:        Authority G.S. 105-163.2A; 105‑163.5; 105‑262;

Eff. June 1, 1990;

Amended Eff. April 1, 2001; July 1, 1999.