§ 105-151.11. Credit for child care and certain employment-related expenses. - North Carolina Statutes

§ 105‑151.11.  Creditfor child care and certain employment‑related expenses.

(a)        Credit. – A personwho is allowed a credit against federal income tax for a percentage ofemployment‑related expenses under section 21 of the Code shall be allowedas a credit against the tax imposed by this Part an amount equal to theapplicable percentage of the employment‑related expenses as defined insection 21(b)(2) of the Code. In order to claim the credit allowed by thissection, the taxpayer must provide with the tax return the information requiredby the Secretary.

(a1)      ApplicablePercentage. – For employment‑related expenses that are incurred only withrespect to one or more dependents who are seven years old or older and are notphysically or mentally incapable of caring for themselves, the applicablepercentage is the appropriate percentage in the column labeled "PercentageA" in the table below, based on the taxpayer's adjusted gross incomedetermined under the Code. For employment‑related expenses with respectto any other qualifying individual, the applicable percentage is theappropriate percentage in the column labeled "Percentage B" in thetable below, based on the taxpayer's adjusted gross income determined under theCode.

Filing Status                  AdjustedGross                      Percentage A                   Percentage B

Income

Head of                          Upto $20,000                                 9%                                   13%

Household

Over$20,000

up to$32,000                                  8%                                   11.5%

Over$32,000                                  7%                                   10%

Surviving

Spouse or

Joint Return                    Upto $25,000                                 9%                                   13%

Over$25,000

up to$40,000                                  8%                                   11.5%

Over$40,000                                  7%                                   10%

Single                             Upto $15,000                                 9%                                   13%

Over$15,000

up to$24,000                                  8%                                   11.5%

Over$24,000                                  7%                                   10%

Married

Filing

Separately                      Upto $12,500                                 9%                                   13%

Over$12,500

up to$20,000                                  8%                                   11.5%

Over$20,000                                  7%                                   10%

(b)        Employment RelatedExpenses. – The amount of employment‑related expenses for which a creditmay be claimed may not exceed three thousand dollars ($3,000) if the taxpayer'shousehold includes one qualifying individual, as defined in section 21(b)(1) ofthe Code, and may not exceed six thousand dollars ($6,000) if the taxpayer'shousehold includes more than one qualifying individual. The amount ofemployment‑related expenses for which a credit may be claimed is reducedby the amount of employer‑provided dependent care assistance excludedfrom gross income.

(c)        Limitations. – Anonresident or part‑year resident who claims the credit allowed by thissection shall reduce the amount of the credit by multiplying it by the fractioncalculated under G.S. 105‑134.5(b) or (c), as appropriate. No creditshall be allowed under this section for amounts deducted from gross income incalculating taxable income under the Code. The credit allowed by this sectionmay not exceed the amount of tax imposed by this Part for the taxable yearreduced by the sum of all credits allowable, except for payments of tax made byor on behalf of the taxpayer. (1981, c. 899, s. 1; 1985, c. 656, ss. 8‑11;1989, c. 728, s. 1.16; 1993, c. 432, s. 1; 1998‑98, ss. 69, 99; 1998‑100,s. 2; 2006‑18, s. 9.)