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Situated in the southeastern portion of the United States, North Carolina offers everything from stunning mountain peaks to serene beaches, making it the perfect place to call home. Living and working in North Carolina, just like any other state, comes with some tax-paying responsibilities.
At BC Tax, our team of professionals is here to help you navigate North Carolina’s tax relief programs and determine which ones you may qualify for.
Tax Relief Programs
There are three tax relief programs in North Carolina that you may be eligible for:
- Elderly or Disabled Exclusion: Designed for individuals who are at least 65 years old and who are either totally or permanently disabled, the elderly or disabled exclusion will exclude a portion of the appraised value of your residence from your property taxes. The previous year’s income, including that of a spouse, must be under $27,100. If you are approved for this property tax relief for seniors in North Carolina, you won’t need to reapply in the future unless there are any changes to your disability, income or permanent residence.
- Circuit Breaker Tax Deferment Program: To qualify for the Circuit Breaker Tax Deferment Program, applicants must be at least 65 years old, totally and permanently disabled and have an income that’s under $40,650, including their spouse’s. This program requires you to apply each year, and if you qualify, your taxes will be limited to a certain percentage of your income.
- Disabled Veteran Exclusion: Unlike the other tax relief programs, there are no age or income requirements to qualify for the Disabled Veteran Exclusion. Instead, you must either be an honorably discharged disabled veteran or an unmarried surviving spouse. With this program, individuals can also still qualify and receive benefits for the Elderly or Disabled Exclusion or the Disabled Veteran Exclusion without having to reapply each year.
New North Carolina Budget Features Income Tax Relief and More Taxpayer Safeguards
As part of the new North Carolina budget, safeguards have been put in place to protect North Carolina taxpayers. With the new budget agreement, both households and small businesses will be able to keep more of their income. The change would lower the personal income tax rate to as low as 2.49%, which would make North Carolina the state with the lowest flat income tax.
The new budget would also include provisions aimed at safeguarding North Carolinians against new taxes and regulations proposed at the local level. This would include materials like containers and plastic bags.
Paying Back Taxes
The North Carolina Offer In Compromise program makes it easier for taxpayers to pay back what they owe. Individuals who are financially distressed and who qualify for the program will be able to pay a lump sum amount in exchange for their liability being fully settled.
