North Carolina (NC) Residents Must Submit New Withholding Allowance Certificates for 2014
Source: http://www.dornc.com/press/2013/nc4requirement.html
The North Carolina General Assembly recently enacted the Tax Simplification and Reduction Act which becomes effective for taxable years beginning on or after January 1, 2014. Under this new law, all taxpayers will pay a lower rate and be granted a higher standard deduction. Taxpayers may no longer claim a personal exemption for themselves, their spouse, children, or any other qualifying dependents. Additionally, many deductions and tax credits that impact North Carolina withholding tax are no longer available for tax years beginning on or after January 1.
As a result of this Act, every employer must have all employees provide a new Employee's Withholding Allowance Certificate, either Form NC-4 EZ (http://www.dornc.com/downloads/nc4ez.pdf) or Form NC-4 (http://www.dornc.com/downloads/nc4.pdf).
- The new form must be completed by the member and provided to the member's SPO so the correct amount of State income tax is withheld for any payment periods beginning on or after January 1, 2014.
- Coast Guard military personnel may submit their withholding changes via Direct Access Self Service in lieu of completing either Form NC-4 EZ or Form NC-4. Follow the instructions in the Direct Access online help to update your state tax information: http://www.uscg.mil/ppc/ps/self_service/members/change_state_tax_information.htm.
If a new form is not submitted or if you do not update your state tax withholding in Direct Access Self Service, PPC will change your NC state income tax withholding to Single and 0 allowances in May.
NC State Income Tax for Military Personnel
Source: Source: http://www.dornc.com/taxes/individual/military.html
If you are serving in the United States Armed Forces and your domicile (legal residence) is North Carolina, you must pay North Carolina income tax and North Carolina income tax should be withheld from your military pay, regardless of where you are stationed. Domicile or legal residence is an individual's permanent home. Your legal residence does not change even though you may be absent for one or more years unless you intend to change your state of residence and you take voluntary and positive actions to do so. Actions that demonstrate your intent to establish a new state of residence include: physical presence in a new location, registration of automobiles, location of bank accounts, and filing and paying local property and income tax in the new location. Without such actions, residency is not changed. A statement that a servicemember intends to carry out these actions at a later date is not sufficient.
Under the Servicemembers Civil Relief Act, if you are a legal resident of another state who is stationed in North Carolina on military orders, you will not be taxed on your military pay by North Carolina. However, if you receive income from non-military employment, tangible property or a business located in North Carolina, you must pay the North Carolina tax on that income.
Questions
Direct questions regarding NC state income taxes to the NC Department of Revenue. Contact information is available on their web site at http://www.dornc.com/aboutus/phones.html.
Direct questions regarding Coast Guard Direct Access procedures and issues to PPC Customer Care via the web form at http://www.uscg.mil/ppc/ccb or by phone (785) 339-2200, or toll-free (866) 772-8724.