Amends GS 105-153.5 to give an individual taxpayer the option to deduct from the taxpayer's gross adjusted income an amount received during the taxable year from State, local, or federal government retirement plans so long as the amount does not excess the lesser of (1) the product of $3,000 multiplied by the number of years the taxpayer has claimed the deduction, or (2) $30,000.
Amends GS 105-153.3 to define retirement plan as it is used in the context of individual income tax. Defines the term to mean any written retirement plan established by the employer to provide payments to an employee or the beneficiary of an employee after the end of the employee's employment with the employer where the right of payment is based on the employment relationship. Includes written retirement plans for self-employed individuals or their beneficiaries, individual retirement plans, and plans treated as an individual retirement plan. Specifies that employee includes volunteer worker.
Effective for taxable years beginning on or after January 1, 2021.
Bill H 75 (2021-2022)Summary date: Feb 11 2021 - View summary