§ 105-151.18. Credit for the disabled. - North Carolina Statutes

§105‑151.18.  Credit for the disabled.

(a)        Disabled Taxpayer.– A taxpayer who (i) is retired on disability, (ii) at the time of retirement,was permanently and totally disabled, and (iii) claims a federal income taxcredit under section 22 of the Code for the taxable year, is allowed as acredit against the tax imposed by this Part an amount equal to one‑thirdof the amount of the federal income tax credit for which the taxpayer iseligible under section 22 of the Code.

(b)        Disabled Dependent.– If a dependent or spouse for whom a taxpayer is allowed an exemption underthe Code is permanently and totally disabled, the taxpayer is allowed a creditagainst the tax imposed by this Part. In order to claim the credit allowed bythis subsection, the taxpayer must attach to the tax return on which the creditis claimed a statement from a physician or local health department certifyingthat the dependent or spouse for whom the credit is claimed is permanently andtotally disabled, as defined in this section. The amount of the credit allowedshall be determined as follows: For a taxpayer whose North Carolina adjustedgross income does not exceed the appropriate income amount provided in thetable below, based on the taxpayer's filing status, the credit allowed is theappropriate initial credit provided in the table below. For a taxpayer whoseNorth Carolina adjusted gross income does exceed the appropriate income amount,the credit allowed is the appropriate initial credit reduced by four dollars($4.00) for every one thousand dollars ($1,000) by which the taxpayer's NorthCarolina adjusted gross income exceeds the appropriate income amount.

                                                                                            Initial                                      Income

Filing Status                                                                       Credit                                      Amount

Head of Household                                                              $64.00                                     $16,000

Surviving Spouse or Joint Return                                          $80.00                                     $20,000

Single                                                                                  $48.00                                     $12,000

Married Filing Separately                                                     $40.00                                     $10,000

(c)        Definitions. – Thefollowing definitions apply in this section:

(1)        North CarolinaAdjusted Gross Income. Adjusted gross income, as determined under the Code,adjusted as provided in G.S. 105‑134.6 and G.S. 105‑134.7.

(2)        Permanently andTotally Disabled. Unable to engage in any substantial gainful activity byreason of any medically determinable physical or mental impairment that can beexpected to result in death or that has lasted or can be expected to last for acontinuous period of not less than 12 months. For the purpose of this section,a minor is permanently and totally disabled if the impact of the impairment onthe minor's ability to function is equivalent in severity to that which wouldmake an adult unable to engage in any substantial gainful activity.

(d)        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. The creditallowed under this section may not exceed the amount of tax imposed by thisPart for the taxable year reduced by the sum of all credits allowable, exceptpayments of tax made by or on behalf of the taxpayer. (1989,c. 728, s. 1.22; 1989 (Reg. Sess., 1990), c. 984, s. 5; 1998‑98, ss. 69,102.)