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NC income tax to drop, new forms could pose problems

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TWC News: NC income tax to drop, new forms could pose problems
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RALEIGH – New laws will drop the state income tax to a flat rate of 5.8 percent in 2014 and 5.75 percent in 2015, allowing North Carolinians to take home more money.

Tax experts say the downside is the new, more complicated Withholding Allowance Certificate, otherwise known as the NC-4. Experts say it's more complicated than the current one, but there's also an easier version, called the EZ NC-4 form, that most people will be able to use.

However, tax experts say be careful with filling out the form.

"Some tax credits are going to disappear, so I would recommend revising withholding for the next two years to make sure at the end of the year, at least they don't owe money," tax preparer Alain Borthayre said.

Some tax credits that are going to disappear with the changes are child care expenses and special education tuition.

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