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Category: North Carolina

North Carolina Additions to Federal Adjusted Gross Income

Interest Income- Enter your interest income, such as interest from notes, bonds and other obligations of states and political subdivisions (other than North Carolina), that was not included in your Federal Adjusted Gross Income. This includes exempt interest dividends from mutual funds (other than obligations of North Carolina or it's political subdivisions). 

Adjustment for Domestic Production Activities - North Carolina does not allow the domestic production activities deduction. If you claimed the deduction on line 35 of your federal form 1040, you must add that amount back to the state return. 

Other Federal Adjusted Gross Income Additions - The amount your basis of property under federal law exceeds your basis of property for State purposes must be added to your adjusted gross income in the year you dispose of the property.