North Carolina Disability Tax Credit Worksheet

Disability Tax Credit Worksheet
Form D-429
D-429

Worksheet for Determining the Credit for the
Disabled Taxpayer, Dependent or Spouse

Web
11-12

North Carolina Department of Revenue
For taxable year ___________
(See the instructions on reverse to determine if you are eligible for either of these credits)

Important: Do not file this form with your North Carolina return. Keep it for your records. However, if you claim this credit you must
attach Federal Schedule R (Credit for the Elderly or Disabled) to your North Carolina return.

Credit for Disabled Taxpayer
	
	

1.	 If you check boxes 2, 4, 5, 6, or 9 on Page 1 of Federal Schedule R, enter the amount of the credit
from the applicable federal schedule in the space below and divide by 3
	
Amount from Line 22, Schedule R: $ ____________

÷

3 =

1.

00

(If you do not claim the credit for a disabled dependent or a disabled spouse, skip Lines 2 through 12 and go to Line 13.)

Credit for Disabled Dependent or Disabled Spouse
	

2.	 Enter your federal adjusted gross income from your federal return, Form 1040 or 1040A

2.

	

3.	 Enter the applicable additions shown on Form D-400, Lines 34 through 36

3.

	

4.	 Add Lines 2 and 3

4.

	

5.	 Enter the applicable deductions shown on Form D-400, Lines 38 through 49

5.

00

	

6.	 Line 4 minus Line 5 (Important: If the result on this line is equal to or less than the base
income amount for your filing status, skip Lines 7 through 11 and enter on Line 12 below
the initial credit from the table below)

6.

00

	

7.	 Enter the base income amount for your filing status from the table below

7.

00

	

8.	 Line 6 minus Line 7

8.

	

9.	 Divide the amount on Line 8 by $1,000 and round the result down to the next whole number

9.

	

10.	 Multiply the number on Line 9 by $4.00

10.

	

11.	 Enter the initial credit for your filing status from the table below

11.

	

12.	 Credit for Disabled Dependent or Disabled Spouse: If Line 10 is more than Line 11, enter zero
here. If Line 10 is less than Line 11, subtract Line 10 from Line 11 and enter the result here

12.

13.	 Add Lines 1 and 12 (Full-year residents enter the result here and on Line 25, Part 4, Form
D-400TC - Individual Tax Credits)

13.

14.	 If you were a part-year resident or a nonresident of North Carolina during the tax year, multiply
the amount on Line 13 above by the decimal amount from Line 16 of Form D-400 and enter the
result here and on Line 25, Part 4, Form D-400TC - Individual Tax Credits

14.

	
	

Filing Status
Single
Head of Household
Qualifying Widow(er) With Dependent
	 Child or Married Filing Jointly
Married Filing Separately

Initial Credit

00
00
00

00
00
00
00
00
00

00
Base
Income Amount

$48
$64

$12,000
$16,000

$80
$40

$20,000
$10,000

Page 2
D-429
Web
10-12

INSTRUCTIONS

Credit for Disabled Taxpayer:
	
If you claim an income tax credit on your federal tax return for being permanently and totally
disabled, as indicated by checking boxes 2, 4, 5, 6, or 9 on page 1 of Federal Schedule R, you may
claim a tax credit on your North Carolina return equal to one-third (1/3) of the amount of the federal tax
credit. If you claim this credit you must attach Federal Schedule R (Credit for the Elderly or Disabled)
to your North Carolina income tax return. Although the federal tax credit is also allowed for being 65 or
older, no portion of the tax credit is allowed on the North Carolina tax return for being age 65 or older;
therefore, if you check boxes 1, 3, 7, or 8 on page 1 of Federal Schedule R, you are not entitled to the
tax credit for a disabled taxpayer.
Complete lines 1 and 13 (and 14 if applicable) to determine the tax credit for a disabled taxpayer.
Credit for Disabled Dependent or Disabled Spouse:
	
You may be entitled to a tax credit if a dependent or spouse for whom you are allowed an exemption
on your federal return is permanently and totally disabled. To qualify for the credit, a statement from a
physician or local health department must be attached to your tax return certifying that the dependent
or spouse was unable to engage in any substantial gainful activity by reason of a physical or mental
impairment that can be expected to result in death or that has lasted or can be expected to last for a
continuous period of not less than 12 months.
	
For a taxpayer whose North Carolina adjusted gross income does not exceed the base income
amount for his filing status, the credit is the initial credit amount as shown in the table at the bottom
of page 1. For a taxpayer whose North Carolina adjusted gross income exceeds the base income
amount, the initial credit is reduced by $4.00 for every $1,000 by which the North Carolina adjusted
gross income exceeds the base income amount.
	
Complete lines 2 through 13 (and 14 if applicable) to determine the tax credit for a disabled
dependent and/or spouse. Complete separate worksheets for each disabled dependent or spouse.
	
(IMPORTANT: A part-year resident or nonresident who claims a tax credit for the disabled
must prorate the credit by multiplying the credit by the decimal amount shown on Form D-400,
Line 16.)