North Carolina's tax laws are changing, and the changes will impact all employees in the state.
The Tax Simplification and Reduction Act becomes effective for taxable years beginning on or after Jan. 1, and all taxpayers are expected to pay a lower rate and get a higher standard deduction, according to the North Carolina Department of Revenue.
But the law means new forms for North Carolinians, in the NC-4 EZ and the NC-4. Those must be completed to make sure the correct amount of state income tax is withheld for payments on or after Jan. 1.
Withholding is the amount of money that is held out of checks to pay taxes at the end of the year. A person's withholding doesn't impact the total amount of tax they pay – just whether they have to pay the state more, or they get a refund.
Any employee who does not provide a new NC-4 EZ or NC-4 will have withholding done at the rate of a single person with zero allowances. For any pension recipient who does not provide an updated NC-4P, the pension payer must withhold at the rate of married with three allowances, the Department of Revenue said.
Department of Revenue spokesman Trevor Johnson said that in tax year 2012, the number of people who withheld at least one dollar of North Carolina state income tax was 4,342,988 people.
Starting 2014, everyone will be taxed at 5.8 percent. Standard deductions have changed as well. For example, the standard N.C. deduction for someone who is married and filing jointly goes from $6,000 to $15,000. The standard deduction for someone who is single goes from $3,000 to $7,500.
People with questions have two ways to get help from the Department of Revenue.
You can call NCDOR at 1-877-252-4487 to reach a call center staffed with people who understand the issues.
You can research your specific issue on the Department of Revenue website.
Saturday, April 12 2014 6:07 AM EDT2014-04-12 10:07:09 GMT
An incredible photo snapped Saturday at the iconic Pipeline on Oahu's North Shore is going viral. A mother humpback whale and her calf were cruising just offshore when a set rolled in. J.T. Gray of North
An incredible photo snapped Saturday at the iconic Pipeline on Oahu's North Shore is going viral.