- North Carolina did not conform to the extension of the federal provision that allowed an exclusion from gross income for the discharge of qualified principal residence indebtedness under section 108 of the Code. If you made this election, an addition to federal adjusted gross income is required for the amount excluded from gross income on your federal return.
- North Carolina did not conform to the extension of the federal provision which allowed an exclusion from gross income for a qualified charitable distribution from an individual retirement plan by a person who has attained age 70 1/2 under section 408(d)(8) of the Code. Therefore, an addition to federal adjusted gross income is required for the amount excluded from gross income on your federal return.
- North Carolina doesn't allow the domestic production activities deduction, so if you claimed it on Line 35 of your federal Form 1040, you'll need to add the amount back here.
- If you elected to exclude a lump-sum distribution from a retirement plan from your regular federal income tax computation and computed the tax separately, the amount of the lump-sum distribution must be added to taxable income.
- If you carry over a net operating loss from another year to the 2014 return, an addition is required for the amount of net operating loss carried to the 2014 tax year that is not absorbed and will be carried forward to subsequent years.
- If you are a shareholder in an S Corporation that paid built-in gains tax for federal income tax purposes, you must add to taxable income your share of the built-in gains tax that the S Corporation paid.
- You must add to taxable income any amount that was contributed to North Carolina's National College Savings Program (NC 529 Plan) and deducted in a prior year that was later withdrawn and used for purposes other than the qualified higher education expenses of the designated beneficiary unless the withdrawal was due to the death or permanent disability of the designated beneficiary.
- If you qualified and elected to report your child's unearned income on your federal return, you included only the child's unearned income in excess of $1,900 in your taxable income. The difference in the child's standard deduction of $500 and the amount of his income not included in your federal taxable income must be added to your income in figuring your North Carolina taxable income.
Other Additions need to be included in the following cases: