How to File Your North Carolina Tax Return for 2018

In 2018, more than 90% of North Carolina taxpayers filed their state tax returns electronically, a choice that significantly sped up the refund process. E-filers often saw their refunds deposited within 2–3 weeks, while those who mailed paper forms had a much longer wait of 6–8 weeks or more. Choosing the correct filing method can significantly affect how quickly you receive your money. If you want to avoid delays, reduce stress, and get your refund sooner, it’s essential to understand how to prepare and submit your North Carolina tax return accurately.

This guide will walk you through filing your 2018 North Carolina income tax return. Whether you are an individual taxpayer, a sole proprietor, or a small business owner, you will learn which forms to complete, how to submit them, and the key deadlines you cannot afford to miss. We will also cover common pitfalls, such as overlooking deductions and credits that could lower your tax liability. Filing early reduces the risk of penalties and interest and gives you more time to resolve any issues the North Carolina Department of Revenue might identify.

Filing correctly the first time saves time, safeguards your refund, and ensures compliance with state tax regulations. Accuracy in reporting your income, claiming deductions, and submitting forms helps prevent costly delays or audits. With the proper preparation, you can navigate tax season confidently, minimize the chance of errors, and maximize the benefits of electronic filing. Ultimately, being informed and organized is the best way to make tax season smoother and more rewarding.

Who Needs to File a North Carolina Tax Return for 2018

Not everyone must file, but missing your obligation can lead to penalties, interest, and lost refunds. North Carolina uses specific gross income thresholds based on your filing status for the 2018 tax year. If your income exceeds the amount for your category, you must file a state income tax return.

2018 Filing Thresholds

• Single: $8,750
• Married Filing Jointly: $17,500
• Married Filing Separately: $8,750 (if your spouse does not claim itemized deductions) or $0 (if your spouse claims itemized deductions)
• Head of Household: $14,000
• Qualifying Widow(er)/Surviving Spouse: $17,500
• Nonresident Alien: $0

Special Situations That Require Filing

Even if your gross income is below these thresholds, you may still need to file if:

• You had North Carolina taxes withheld and want to claim a refund.
• You had self-employment income, interest, or other taxable income in North Carolina.
• You meet the eligibility requirements for specific deductions or credits requiring a claim return.

State vs. Federal Requirements

You may need to file a North Carolina return even if you are not required to file a federal return. This often happens when your federal income is below the national filing threshold but your state income meets or exceeds North Carolina’s minimum requirements. Filing is not just about meeting legal obligations—it is about protecting your refund, keeping your tax record clean, and avoiding future disputes with the Department of Revenue.

Filing Deadlines and Key 2018 Tax Changes

For the 2018 tax year, North Carolina individual income tax returns were due April 15, 2019. If the date fell on a weekend or holiday, the deadline shifted to the next business day. Meeting this deadline was essential to avoid penalty charges and interest on any unpaid tax.

Late Filing and Payment Penalties

• Late Filing: 5% of the unpaid tax for each month the return is late, up to a maximum of 25%.
• Late Payment: 10% of the unpaid tax, plus interest from the original due date until the payment is made.
• Penalties apply even if you file an extension—an extension to file is not an extension to pay.

Notable 2018 Tax Law Changes

The 2018 tax year brought several necessary adjustments for taxpayers:

1. Child Tax Credit Conversion: The previous credit became a child deduction with expanded income eligibility and multiple deduction levels.
2. Itemized Deductions: You could claim North Carolina itemized deductions even if you did not itemize on your federal return. This required Form D-400 Schedule S.
3. Federal Tax Reform Impact: Under the Tax Cuts and Jobs Act, some individuals were required to file a North Carolina return even if they did not need to file federally.

Staying aware of these changes helped taxpayers claim all eligible deductions and avoid losing out on money they were entitled to.

Forms You Need to File

Filing your 2018 North Carolina tax return correctly starts with using the proper forms. The primary form for all individual taxpayers is Form D-400, but depending on your situation, you may also need additional schedules or supporting documents. Using the wrong paper forms or forgetting required schedules can delay your refund or result in penalties.

Form D-400 – Individual Income Tax Return

• The main form for all residents, part-year residents, and nonresidents with North Carolina income.
• Serves as the starting point for reporting income, deductions, credits, and tax due.

Form D-400 Schedule S – Supplemental Schedule

• Used for reporting additions or deductions from federal adjusted gross income.
• Required when claiming North Carolina itemized deductions.
• Essential if you want to make the most of deductions claimed during the year.

Form D-400 Schedule PN – Part-Year and Nonresident Schedule

• Determines the percentage of income taxable by North Carolina.
• This is needed if you moved in or out of the state during the tax year.

Form D-400TC – Individual Income Tax Credits

• Allows you to apply eligible state credits against your tax liability.
• Additional pages or documentation may be required depending on the credit.

Form D-400 Schedule AM – Amended Schedule

• Required for making corrections or reporting changes from a federal adjustment.
• Helps ensure the amended return is processed without delays.

Where to Get the Forms

You can download official forms from the North Carolina Department of Revenue website. Select the correct version for the 2018 tax year, as using the wrong form can slow down processing. Using the proper forms is not just a formality—it is an essential step in ensuring your return is filed accurately and on time.

Step-by-Step Guide to Filing Your 2018 North Carolina Tax Return

Filing a tax return may seem overwhelming, but breaking it down into clear steps makes it manageable. This section will guide you from gathering your essential documents to submitting your return and securing your refund.

Step 1: Gather Required Documents

Before you start, have all necessary records on hand:

• W-2 forms from all employers.
• 1099 forms for interest, dividends, retirement income, or other earnings.
• A completed federal income tax return, as North Carolina uses your federal AGI as the starting point.
• Receipts or records for deductions and credits you claimed.
• Last year’s return for reference.

Having these ready will save time and help avoid mistakes that could delay your refund.

Step 2: Complete Your Federal Return First

Your North Carolina return starts with your federal adjusted gross income. Even if you are not required to file a federal return, you must prepare a federal schedule showing how your AGI was calculated. This step ensures that all income, deductions, and credits are correctly transferred to the state form.

Step 3: Fill Out Form D-400

When completing Form D-400, be sure to:

• Enter your details clearly, including Social Security numbers.
• Report your federal AGI, then add any required adjustments using Schedule S.
• Choose between the standard deduction and itemized deductions.
• Apply the child deduction if eligible.
• Calculate your taxable income and apply the correct tax rate (5.499% for 2018).
• Subtract applicable credits using Form D-400TC.

Step 4: Calculate Payments and Determine Refund or Amount Due

• Include North Carolina tax withheld as shown on your W-2 or 1099 forms.
• Add any estimated payments made during the year.
• If your payments exceed your tax liability, you will receive a refund.
• If you owe, note the balance and arrange your payment method.

Step 5: Avoid Common Filing Errors

Mistakes can delay processing or cost you money:

• Incorrect Social Security numbers.
• Missing signatures (both spouses must sign if filing jointly).
• Using the wrong tax rate.
• Forgetting to attach required forms or schedules.
• Rounding errors.
• Using outdated paper forms instead of the 2018 versions

Filing your North Carolina return is more than filling out forms—it’s about accuracy, timeliness, and ensuring you receive every dollar you’re entitled to. Following these steps will help you file confidently and avoid unnecessary penalty charges.

Filing Methods

Choosing the correct filing method can distinguish between a quick refund and a long wait. In 2018, more than 90% of North Carolina taxpayers opted for electronic filing because it was faster, more accurate, and offered convenient payment options.

Electronic Filing (Recommended)

E-filing is the most efficient way to file your return:

• Speed: Refunds are typically issued in 2–3 weeks for e-filed returns.
• Accuracy: Built-in error checks reduce the risk of costly mistakes.
• Convenience: Direct deposit for refunds and online payment options for balances due.
• Confirmation: You receive immediate confirmation that your return was accepted.

Free E-Filing Options:

Over 70% of North Carolina residents qualified for the NC Free File program in 2018. Eligibility was based on gross income, age, and other factors. Details are available on the NC Department of Revenue website.

Paper Filing

If you choose to use paper forms, keep in mind that the process is slower:

• Refunds for paper returns can take 6–8 weeks or longer.
• Errors are more common with manual entry, leading to delays.
• You must mail your return to the correct address:
  
  • Refund due: P.O. Box R, Raleigh, NC 27634-0001
  • Tax due or zero balance: P.O. Box 25000, Raleigh, NC 27640-0640
  • Amended returns: P.O. Box 25000, Raleigh, NC 27640-0640

Mailing the correct form to the proper state address is essential to avoid lost returns or late filing penalties. Double-check all information before sending your return, regardless of your chosen method. Filing on time and accurately will help you avoid penalties and get your refund sooner.

How to Pay Your North Carolina Taxes

If your 2018 return shows a balance due, you must arrange payment by the original filing deadline to avoid penalties and interest. North Carolina offers both online and mail options to make paying as simple as possible.

Online Payments

Paying online is the fastest and most secure method:

• Bank Draft: Free transfer from your checking or savings account.
• Credit/Debit Card: Visa or MasterCard accepted, with a $2 convenience fee per $100 paid.
• Access payment options through the NCDOR File & Pay page.

Payment by Check or Money Order

If you prefer mailing your payment:

1. Make it payable to the North Carolina Department of Revenue.
2. Write “2018 D-400” with your name, address, and Social Security number.
3. For joint returns, include both Social Security numbers in the order they appear on your return.
4. Use the personalized Form D-400V voucher from the NCDOR website.
5. Send to the address for returns with payment due.

Penalties for Late Payment

Failing to pay by the April deadline will cost you:

• 10% penalty on unpaid tax.
• Interest is charged from the original due date.
• A collection assistance fee of 20% if unpaid after 90 days.

Paying on time is a crucial part of filing your tax return. Even if you cannot pay in full, paying as much as possible will reduce penalties and interest.

Tracking Your Refund or Balance Due

Once you have filed your 2018 North Carolina tax return, you can easily check the status of your refund or see if you still owe a balance. Tracking your return helps you catch any processing issues early and gives you peace of mind.

Checking Your Refund Status

• Online: Use the “Where’s My Refund?” tool on the NCDOR Refund Status page.
• By Phone: Call the automated refund line at 1-877-252-4052, available 24/7.

You will need:

• The first Social Security number listed on your return.
• The exact refund amount as it appears on your return.

Processing Times

• E-Filed Returns: Usually processed within 2–3 weeks.
• Paper Forms: May take 6–8 weeks or longer.
• Additional time may be needed if your return requires manual review.

Balance Due Inquiries

If you owe additional tax, check your account online or call customer service at 1-877-252-3052. This will ensure you know any outstanding payment requirements before penalties and interest accrue. Checking regularly is essential to avoid delays, resolve issues, and ensure your refund or payment is processed correctly.

Common Mistakes to Avoid When Filing Your 2018 North Carolina Tax Return

Even experienced taxpayers can make errors that slow down refunds or trigger penalties. Here are some to watch for:

• Using outdated paper forms instead of the 2018 versions.
• Forgetting to sign the return or missing a spouse’s signature for joint filings.
• Incorrectly entering Social Security numbers or gross income amounts.
• Claiming deductions not eligible for the 2018 tax year or forgetting deductions you are entitled to.
• Mailing to the wrong address delays both processing and payment posting.
• Not attaching required schedules, such as Schedule S or Schedule PN.
• Miscalculating tax due or refund amounts because of rounding or math mistakes.

Taking a few minutes to review your work can save weeks of delay. Accurate forms and correct information are essential to ensure your return is processed quickly and your refund arrives without issues.

Final Filing Checklist

Before submitting your 2018 North Carolina tax return, use this checklist to ensure nothing is missing. An incomplete or inaccurate filing can cause delays, trigger penalties, or result in a rejected refund.

Required Documents and Attachments:

• Completed Form D-400.
• All W-2s and 1099s show North Carolina tax withheld.
• Federal income tax return copy (if your federal return does not show a North Carolina address).
• Schedule S, Schedule PN, or Form D-400TC if applicable.
• Form D-400V if you are mailing a payment.

Important Filing Steps:

• Check that all Social Security numbers are correct.
• Sign the return—both spouses must sign if filing jointly.
• Use the correct state mailing address for your filing situation.
• Keep copies of all forms and documents for at least three years.

This checklist will help you avoid common mistakes, save time, and ensure your return is processed smoothly.

Frequently Asked Questions (FAQs)

What happens if I miss the filing deadline for the 2018 tax year?

If you miss the April deadline, penalties and interest begin immediately on any unpaid tax. The late filing penalty is 5% per month, up to 25%, while late payment adds 10% more. To avoid further charges, file as soon as possible, even if you cannot pay in full, and arrange a payment plan to end additional costs.

Can I still e-file my 2018 North Carolina tax return for free?

You cannot e-file a 2018 return using the NC Free File program anymore, as it only applies to the current tax year. However, you can still file electronically using authorized tax preparation software that supports prior years. The NC Department of Revenue website has a dedicated page, which was last reviewed with updated instructions for older returns.

What deductions are often missed by taxpayers?

Commonly overlooked deductions include contributions to NC 529 education savings plans, certain retirement income qualifying under the Bailey settlement, and moving expenses for active-duty military. Reviewing your work during the year for potential deductible expenses is essential. The NC Department of Revenue’s “page last reviewed” section can help confirm what’s currently allowed.

How long should I keep my tax records?

Keep your North Carolina tax returns and supporting documents for at least three years from the due date or filing date, whichever is later. This ensures you can respond if your return is questioned. Some situations, such as property sales or federal audits, may require longer retention to avoid issues at the end of a review period.

Who can I contact for help with my 2018 North Carolina tax return?

You can contact the North Carolina Department of Revenue or visit an in-person service center. Their official website lists updated contact details, office hours, and resources. Look for the “last reviewed or updated” notation on their assistance page to ensure you view the most current guidance for your tax year questions.