@NCCapitol

@NCCapitol

NC residents find new withholding form taxing

Posted December 11, 2013
Updated December 15, 2013

— As a result of the tax reform bill state lawmakers passed this year, North Carolinians who earn any kind of taxable income in the state have to fill out a new NC-4 state withholding form.

Lawmakers say the changes simplify the tax code, but it's leaving a lot of taxpayers scratching their heads.

The old NC-4 was a two-page form. The new one is five pages long, and even the EZ version doesn't look all that easy. People who don't provide their employers with a new form will have taxes withheld from their paychecks at the highest level possible – a single taxpayer with no allowances.

"We have established a new call line specifically for the NC-4. it's received about 4,000 calls in the first month," said Trevor Johnson, spokesman for the Department of Revenue.

People can call toll-free 1-877-252-4487 through Feb. 28 to get help from the agency on the NC-4.

One reason the form is more complicated is because the state no longer goes along with some federal deductions, so someone's state taxable income might be higher than their federal figure.

NC-4 withholding form Tax reform means new tax form in NC

State deductions have seen big changes, too. Lawmakers repealed almost all itemized deductions. Retirement and business income are no longer deductible. There's no more earned income tax credit and no credit for child care or educational expenses.

Sen. Bill Rabon, R-Brunswick, who helped write the new law, calls it more equitable.

"I think a lot of people historically who did their own taxes, particularly those who didn't know too well what the tax code was, didn't take advantage of those different (deductions and credits)," Rabon said.

"As we move forward, we want to make everything as simple as possible. We want to make everything as equal as possible. We want all the taxpayers treated fairly, and hopefully, treated the same," he said.

The changes don't necessarily mean that tax bills will go up next year, Rabon said, because lawmakers also doubled the standard state deduction and lowered the overall tax rate to a flat 5.8 percent.

People with higher incomes will no longer pay higher tax rates. In fact, the more one earns, the more he or she will save under the new law.

Not everyone will come out ahead under the new system, however. Rabon acknowledges that some people may ending up paying more in state taxes than they have in the past, but he says most people will end up paying less.

39 Comments

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  • tracmister Dec 17, 2013

    The bottom line is that every NC taxpayers will pay less because the party of good governance and help everyone has simplified and reduced the NC tax code. Thank-you yet again Republican Party.
    cbuckyoung

    Unless you make at least 200,000; you're in store for a rude awakening. The GOP cut the tax rate and got rid of many deductions while doubling the standard deduction. The bottom line is the middle class and most of the upper middle class will give more money to government while wealthy pay less.

  • cringercat1862 Dec 17, 2013

    I vote republican because I want to keep what I earn, not give it away to ambivilant americans that fish for handouts. I dont understand why anyone who pays federal income taxes votes democrat, unless you are on the public dole.

  • wlbbjb Dec 17, 2013

    I've never understood why any working class person could be a republican. The GOP have always represented the very rich.

  • stormtrooper76 Dec 16, 2013

    The bottom line is that every NC taxpayers will pay less because the party of good governance and help everyone has simplified and reduced the NC tax code. Thank-you yet again Republican Party.

    cbuckyoung

    Disagree..... It appears that the middle class, the poor and retirees will pay more and only the wealthy will pay less.

  • cbuckyoung Dec 16, 2013

    The bottom line is that every NC taxpayers will pay less because the party of good governance and help everyone has simplified and reduced the NC tax code. Thank-you yet again Republican Party.

  • tracmister Dec 16, 2013

    You thought the democrats were bad; if you middle class and voted Republican time to pay with you wallets.

  • notexactly Dec 16, 2013

    just like the some will pay more in insurance because of the ACA. Some is turning out to be most.

  • notexactly Dec 16, 2013

    six

    I agree with you on the interest part, But not with you saying it is a gop thing. That's how taxes has been done forever. Also if that makes you mad, think about how the gov. is screwing you with ss. Specially if you die or your spouse, and one of you or both get screwed out of what you paid in and interest. Stop your gop blaming, it is the whole government.

  • Rebelyell55 Dec 16, 2013

    Glad someone picked up on the "some people will pay higher taxes" meaning most middle class family .

  • Bill Brasky Dec 16, 2013

    "Simpler and easier to do North Carolina taxes. Another great move by the party of common sense and good governance-The Republican Party. Taxes for all North Carolina citizens will decrease this year and that is the winning formula for creating jobs and lifting people at every level higher."

    Go talk to an accountant...Quite the opposite.

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