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  • Summary date: May 27 2020 - View Summary

    Enacts GS 105-153.11 to provide a private school and home school credit option for eligible individual taxpayers of up to $2,500 per dependent child for private school credit and $500 per dependent child for home school credit. Restricts eligibility to taxpayers who received a federal economic income payment under the CARES Act whose adjusted gross income declined by at least 10% from the preceding tax year, and who has one or more dependent children in attendance at a nonpublic school, or a home school, as applicable, for the spring and fall semesters of that tax year and the spring semester through April 15 of the succeeding tax year. Provides for reduction of the credit per dependent child for a taxpayer's adjusted gross income that exceeds the appropriate income amount provided based on filing status, ranging from $75,000 ("Other") to $150,000 ("Married, filing jointly/surviving spouse"). Caps the private school credit at $7,500, and the home school credit at $1,500, or the amount of adjusted tax imposed on the taxpayer for the taxable year. Provides for a pro rata determination of credit for split attendance situations. Allows for the credit to carry forward for the succeeding three year.

    Amends GS 105-153.5 to provide for the an income tax deduction of amounts paid during the period of March 28, 2020, to December 31, 2020, the first $2,500 of bonus compensation and overtime pay, if the taxpayer received a federal economic impact payment under the federal CARES Act and whose adjusted gross income for the tax year does not exceed the appropriate income amount provided in the table of new GS 105-153.11.

    Effective for taxable years beginning on or after January 1, 2020, and expires for taxable years beginning on or after January 1, 2021.