Important 2015 North Carolina Tax Regulation Changes for Individuals

1) The current 3-tier tax rate is eliminated and replaced with 1 flat rate for everyone of 5.8%.
2) The personal exemption is eliminated. Previously $2,500 or $2,000 depending on your amount of income.
3) The standard deduction is increased as follows:
          a) Single and under age 65 changed from $3,000 to $7,500
          b) Married filing jointly and under age 65 changed from $6,000 to $15,000
          c) Head of Household and under age 65 changed from $4,400 to $12,000
          d) Ask about other situations.
4) Itemized deductions are capped out at $20,000.
5) Private retirement exemption of $2,000 is eliminated.
6) Certain government retirement exemptions of $4,000 are eliminated.
7) Deductions for childcare and education expenses are eliminated.
8) Child tax credit increased from $100 to $125 per child per family for families with income under $40,000.
9) The deduction for severance pay is eliminated.
10) The deduction for up to $50,000 in personal business income is eliminated.
11) There is a new tax on movie and live event admissions.
12) No more sales tax holiday for school related products or energy star products.

These are the most relative changes for most taxpayers. Ask us about additional changes that may affect you.