Fillable Form NC-4 (2017)

Fill and sign NC-4 (2017) online and download in PDF.

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What is Form NC-4?

Form NC-4, also known as the "Employee's Withholding Allowance Certificate," is a document used in the state of North Carolina for tax purposes. It serves as a declaration of how much state income tax an employer should withhold from an employee's paycheck.

By completing this form accurately, employees can avoid overpaying or underpaying their state income taxes throughout the year. Employees can also use Form NC-4 to indicate if they wish to have an additional amount withheld from each paycheck to cover any anticipated tax liability or to account for income from other sources, such as self-employment income or investment earnings.

How do I fill out Form NC-4?

Get a copy of NC-4 (2017) template in PDF format.

GET A COPY

You can find a fillable copy of Form NC-4 here.

Form NC-4

Line 1 - Total Number of Allowances Being Claimed

Enter the total number of allowances being claimed through this form.

Line 2 - Additional Amount Withheld From Each Pay Period

Enter the additional amount withheld from each pay period, if any.

Social Security Number

Enter the employee's social security number.

Marital Status

Mark the circle that corresponds to the employee's marital status.

Full Name

Enter the employee's first name, middle initial, and last name in the spaces provided.

Address

Enter the following information about the employee's address in the spaces provided.

• Street Name and Number
• County
• City
• State
• ZIP Code
• Country (if not the US)

Employee’s Signature

Have the employee sign the form in the space provided then enter the date that the form was signed.

Part I

Answer each of the questions in each section that corresponds to your filing status.

Single

• Will your NC itemized deductions from Page 3, Schedule 1 exceed $11,249?
• Will you have adjustments or deductions from income from Page 3, Schedule 2?
• Will you be able to claim any NC tax credits or tax credit carryovers from Page 4, Schedule 4?

If you answered “No” to all of the above questions, stop here and enter zero as total allowances from Form NC-4, Line 1. If you answered “Yes” to any of the above, you may proceed to Page 2, Part II to determine if you qualify for additional allowances. Otherwise, enter zero on Line 1.

Married Filing Jointly

• Will your NC itemized deductions from Page 3, Schedule 1 exceed $19,999?
• Will you have adjustments or deductions from income from Page 3, Schedule 2?
• Will you be able to claim any NC tax credits or tax credit carryovers from Page 4, Schedule 4?
• Will your spouse receive combined wages and taxable pensions of less than $6,250 or only retirement benefits not subject to NC income tax?

If you answered “No” to all of the above questions, stop here and enter zero as total allowances from Form NC-4, Line 1. If you answered “Yes” to any of the above, you may proceed to Page 2, Part II to determine if you qualify for additional allowances. Otherwise, enter zero on Line 1.

Married Filing Separately

• Will your NC itemized deductions from Page 3, Schedule 1 exceed $11,249?
• Will you have adjustments or deductions from income from Page 3, Schedule 2?
• Will you be able to claim any NC tax credits or tax credit carryovers from Page 4, Schedule 4?

If you answered “No” to all of the above questions, stop here and enter zero as total allowances from Form NC-4, Line 1. If you answered “Yes” to any of the above, you may proceed to Page 2, Part II to determine if you qualify for additional allowances. Otherwise, enter zero on Line 1.

Head of Household

• Will your NC itemized deductions from Page 3, Schedule 1 exceed $16,499?
• Will you have adjustments or deductions from income from Page 3, Schedule 2?
• Will you be able to claim any NC tax credits or tax credit carryovers from Page 4, Schedule 4?

If you answered “No” to all of the above questions, stop here and enter zero as total allowances from Form NC-4, Line 1. If you answered “Yes” to any of the above, you may proceed to Page 2, Part II to determine if you qualify for additional allowances. Otherwise, enter zero on Line 1.

Surviving Spouse

• Will your NC itemized deductions from Page 3, Schedule 1 exceed $19,999?
• Will you have adjustments or deductions from income from Page 3, Schedule 2?
• Will you be able to claim any NC tax credits or tax credit carryovers from Page 4, Schedule 4?

If you answered “No” to all of the above questions, stop here and enter three as total allowances from Form NC-4, Line 1. If you answered “Yes” to any of the above, you may proceed to Page 2, Part II to determine if you qualify for additional allowances. Otherwise, enter three on Line 1.

Part II

Line 1

Enter the total of your estimated NC itemized deductions from Page 3, Schedule 1.

Line 2

Enter the applicable amount from the following, based on your filing status:

• $8,750 (Single)
• $17,500 (Married Filing Jointly, or Surviving Spouse)
• $8,750 (Married Filing Separately)
• $14,000 (Head of Household)

Line 3

Subtract the amount on Line 2 from the amount on Line 1 and enter the difference. If Line 2 is greater than Line 1, enter zero here instead.

Line 4

Enter an estimate of your total federal adjustments to income and State deductions from federal adjusted gross income from Page 3, Schedule 2.

Line 5

Add Lines 3 and 4 and enter the sum.

Line 6

Enter an estimate of your nonwage income.

Line 7

Enter an estimate of your state additions to federal adjusted gross income from Page 3, Schedule 3

Line 8

Add Lines 6 and 7 and enter the sum.

Line 9

Subtract Line 8 from Line 5. If the difference would be negative, enter zero instead.

Line 10

Divide the amount on Line 9 by $2,500. If the quotient is not a whole number, round it down to the nearest whole number.

Line 11

Enter the amount of your estimated NC tax credits from Page 4, Schedule 4.

Line 12

Divide the amount on Line 11 by $140. If the quotient is not a whole number, round it down to the nearest whole number.

Line 13

If you are filing as single, head of household, or married filing separately, enter zero in this line. If you are filing as a surviving spouse, enter three. If filing as married filing jointly, enter the appropriate number from the below options:

• Three (Your spouse expects to have zero wages and expects to receive retirement benefits that will all be nontaxable for NC purposes).
• Two (Your spouse expects to have combined wages and taxable pensions of more than $1, but less than $3,750).
• One (Your spouse expects to have combined wages and taxable pensions of more than $3,750, but less than $6,250).
• Zero (Your spouse expects to have combined wages and taxable pensions of more than $6,250).

Line 14

Add Lines 10, 12, and 13, then enter the total here.

Line 15

If this worksheet was completed on the basis of married filing jointly, the total number of allowances determined on Line 14 may be split between you and your spouse in whatever way you choose. Enter the number of allowances from Line 14 that your spouse plans to claim.

Line 16

Subtract Line 15 from Line 14. Enter the difference here and on Line 1 of your Form NC-4, Line 1 above.

NC-4 Allowance Worksheet Schedules

Note that if you are for whatever reason unable to reasonably estimate the amount to enter in the schedules below, you should enter zero on Form NC-4, Line 1.

Schedule 1 - Estimated NC Itemized Deductions

Enter your estimated amounts for each of the following.

• Qualifying Mortgage Interest
• Real Estate Property Taxes
• Total Qualifying Mortgage Interest and Real Estate Property Taxes*
• Charitable Contributions
• Medical and Dental Expenses
• Total Estimated NC Itemized Deductions (Enter this amount on Page 2, Part II, Line 1 as well).

*The sum of your qualified mortgage interest and real estate property taxes may not exceed $20,000. In the case of married taxpayers, the $20,000 limit applies to the combined total of qualified mortgage interest and real estate property taxes claimed by both spouses, rather than each of them separately.

Schedule 2

Estimated Federal Adjustments to Income

Enter your estimated amounts for each of the following.

• Health Savings Account Deduction
• Moving Expenses
• Alimony Paid
• IRA Deduction
• Student Loan Interest Deduction
• Certain Business Expenses of Reservists, Performing Artist, and Fee-Basis Governmental Officials
• Total Federal Adjustments to Income

Estimated State Deductions from Federal Adjusted Gross Income to Consider for NC-4 Purposes

Enter the estimated amounts for each of the following.

• 20% of Prior Bonus Depreciation Addback
• 20% of Prior Section 179 Addback
• Amount by which North Carolina Basis of Property Exceeds Federal Basis of Property - In Year Taxpayer Disposes of Property
• Total State Deductions from Federal Adjusted Gross Income
• Total Federal Adjustments to Income and State Deductions from Federal Adjusted Gross Income. Enter this amount on Page 2, Part II, Line 4.

Schedule 3 - Estimated State Additions to Federal Adjusted Gross Income to Consider for NC-4 Purposes

Enter the amounts requested for each of the following.

• Shareholder’s share of built-in gains tax that the S corporation paid for Federal Income Tax purposes
• Amount by which federal basis of property exceeds NC basis of property - in year taxpayer disposes of property
• Amount of gross income from domestic production activities that a taxpayer excludes from gross income under Section 199 of the Internal Revenue Code (IRC)
• Amount excluded from the taxpayer’s gross income for the discharge of qualified principal residence indebtedness under Section 108 of the IRC
• Adjustment for bonus depreciation
• Adjustment for Section 179 expense deduction
• Total State Additions to Federal Adjusted Gross Income. Enter this amount on Page 2, Part II, Line 7.

Schedule 4 - Estimated Tax Credits

Tax Credit for Income Taxes Paid to Other States by Individuals

Enter the total amount of tax credit for income taxes paid to other states by individual taxpayers here.

Credit for Children

For your filing status, note the adjusted gross income ranges in the table provided. Then, enter the number of children that qualify for tax credits within the given adjusted gross income ranges, and the total amount of estimated credit that can be claimed for them in the spaces provided.

Additional Tax Credits

Enter the amount of additional tax credits that can be claimed from the following.

• GS 105-129.105, Credit for Rehabilitating Income-Producing Historic Structure
• GS 105-129.106, Credit for Rehabilitating Nonincome-Producing Historic Structure
• Tax Credit Carryover from Previous Years

Total Tax Credits and Carryovers

Add all of the tax credits listed in this schedule and enter the sum here. Enter this amount on Page 2, Part II, Line 11 as well.

Frequently Asked Questions (FAQs)

Can Form NC-4 be used in any other state?

No. Form NC-4 is specific to North Carolina. Other states have their own version of this form, so make sure to fill those out instead of this one.

What if Form NC-4 is not filed?

If an employee fails to file Form NC-4 with their employer, or if the form is incomplete or inaccurate, the employer will typically default to withholding taxes based on the employee's filing status as "Single" with zero allowances. This means that the maximum amount of taxes will be withheld from the employee's paycheck.

What if the information provided on Form NC-4 is wrong?

If the information provided on Form NC-4 is incorrect, it can result in inaccurate withholding of state income taxes from the employee's paycheck. This could lead to discrepancies between the amount of tax withheld and the actual tax liability, potentially causing financial inconvenience for both the employee and the employer.

Can I correct erroneous information on Form NC-4 after it has been filed?

Yes. If you realize that the information provided on your Form NC-4 is incorrect or needs to be updated, you can submit a new, corrected form to your employer. It's essential to communicate any changes promptly to ensure that the correct amount of state income tax is withheld from your paychecks.

Is there a deadline to file Form NC-4?

Generally, no. However, it's recommended to submit the form as soon as you begin employment or as soon as there are changes to your tax situation. This ensures that your employer withholds the correct amount of state income tax from your paychecks throughout the year.

What if my employer does not use the information on my Form NC-4?

If your employer doesn't use the information on your Form NC-4 for tax withholding, it could result in discrepancies between the amount of tax withheld from your paycheck and your actual tax liability, which can lead to legal consequences for both you and your employer.

Can Form NC-4 be filed electronically?

Yes. Many employers provide online portals or systems where employees can submit their tax withholding information electronically, including Form NC-4. Additionally, the North Carolina Department of Revenue may also offer electronic filing options for Form NC-4 directly through their website.

Is there a fee for filing Form NC-4?

No, there is no fee associated with filing Form NC-4.

Can I have someone else fill out and file Form NC-4 on my behalf?

Yes. This will, generally, require a letter of authorization and clear instructions for the person filing on your behalf to follow.

How often should Form NC-4 be updated?

As a general rule, it is best to update Form NC-4 every time a significant change occurs in your tax situation.

What if my marital status changes within the tax year?

If marital status changes during the tax year, employees should update their Form NC-4 with their employer promptly to reflect the change.

Are retirees required to file Form NC-4?

Retirees receiving income subject to North Carolina state income tax may be required to file Form NC-4 to specify their tax withholding preferences.

Can employees claim exempt status from state income tax withholding on Form NC-4?

Yes, employees who meet certain criteria can claim exempt status from state income tax withholding by indicating so on Form NC-4.

What should employees do if they have no North Carolina income tax liability?

Employees with no North Carolina income tax liability can claim exempt status on Form NC-4 or indicate zero allowances to ensure no tax is withheld from their paychecks.

Are there any age restrictions for filing Form NC-4?

No, there are no age restrictions for filing Form NC-4. All employees subject to North Carolina state income tax withholding should complete the form as necessary.