- North Carolina taxed the forgiveness of PPP loans in 2020, while the Federal Government did not ! This frustrated all of us! The good news is in November 2021 the law was changed (Senate Bill 105) and you can amend your 2020 business and personal tax returns to get a refund of North Carolina tax paid on the PPP loan forgiveness… so give us a call !
- The 2018 Federal Tax Law limited the amount of state and local taxes (such as real estate tax) to be itemized … which also negatively affected North Carolina taxable income. But the new Senate Bill 105 will allow S Corporations and Partnerships to pay the owners’ personal state and local taxes starting in 2022, get the deduction, and avoid the $10,000 limit on the individual Federal itemized deductions ! This will help so many taxpayers !!
- Starting in 2025 through 2030, the North Carolina corporate income tax will be reduced to 0%, yes that’s ZERO !
- Starting in 2022, North Carolina will reduce the Personal Income Tax Rates from 5.25% to 3.99% over six years and put money back in the pockets of taxpayers who know best how to utilize their money ! Yea for us !
- Medical Expenses on the North Carolina personal tax return can now be deducted with the same income threshold of 7.5% as the Federal Tax Return limit instead of 10%. Not much, but every dollar adds up!
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