Extra Credit Grants

If you have already received the $335 check you are not eligible to apply for the Extra Credit Grant Program. 

About

About

Extra Credit Grant Program Extended 

The Extra Credit Grant program was established by law in 2020 to use funds from the Coronavirus Relief Fund to help families with qualifying children in North Carolina by providing economic support to assist with virtual schooling and child-care costs during the COVID-19 pandemic. 

Under legislation signed into law May 24, 2021, individuals who missed the original Extra Credit grant deadline may be eligible to receive the $335 grant payment.

The new law extending the Extra Credit Grant program through July 1, 2021 only applies to eligible individuals who have NOT received the $335 grant. If you have already received the $335 grant, you are not eligible under the new law. 

Extra Credit Grant video 

Who is Eligible?

North Carolina families with qualifying children who were 16 or younger at the end of 2019 who did not already receive the $335 check from the NC Department of Revenue.

  1. Qualifying individuals who were not required to file a 2019 state tax return and have NOT already received the $335 grant
  2. Eligible individuals who filed a 2019 state tax and did NOT receive the $335 grant

Eligibility at a glance

Payments 

Checks will be mailed to most qualifying Extra Credit Grant recipients 2-4 weeks after the application is submitted. Anyone who does not qualify will receive a letter from the Department.

Extra Credit Grant checks re-validated because of updated mailing addresses may be cashed at any financial institution or businesses that allow check cashing. While checks list the State Treasurer on them, the Department of State Treasurer cannot cash or assist with the checks.

 

Last Updated: May 25, 2021

Eligibility

Eligibility

Who is eligible to receive the grant payment under the extended Extra Credit Grant Program?

Overview

Eligibility at a glance

North Carolina families with qualifying children who were 16 or younger at the end of 2019 who did not already receive the $335 check from the NC Department of Revenue. 

  1. Qualifying individuals who were not required to file a 2019 state tax return and have NOT already received the $335 grant
  2. Eligible individuals who filed a 2019 state tax return and did NOT receive the $335 grant

Full Eligibility Requirements 

The following individuals with a qualifying child who was 16 or younger at the end of 2019 who have not already received the grant payment from the NC Department of Revenue may be eligible to receive the grant. The grant amount is $335.00 total for each eligible individual, even if the individual has two or more qualifying children.

  1. Qualifying Individuals Who Did Not File a 2019 Individual Income Tax Return. If you did not file a 2019 North Carolina Individual Income Tax Return, Form D-400, solely because your federal gross income (and your spouse’s federal gross income, if applicable) for 2019 did not exceed the State’s filing requirement for your filing status for 2019 (generally $10,000 per year if you are single and $20,000 per year if you are married), you may be eligible to receive an Extra Credit Grant payment under the extended program if you meet all of the conditions of the program and you apply for the grant on or before July 1, 2021. Note: You can apply for the grant under the extended program even if you previously applied for the grant, but you did not receive the grant because the Department determined that you were ineligible to receive the grant.
  2. Qualifying Individuals Who Filed a 2019 Individual Income Tax Return. If you filed a 2019 North Carolina Individual Income Tax Return, Form D-400, on or before October 15, 2020, you may be eligible to receive an Extra Credit Grant payment under the extended program if you meet all of the conditions of the program and you perform one of the following actions on or before July 1, 2021:
    1. File Form NC-1105. If you filed a 2019 individual income tax return you can ONLY file Form NC-1105, if you did not previously receive an automatic grant award because you did not report a qualifying child on Line 10a of your timely filed 2019 Form D-400.  Note: If you are eligible to apply for the grant using this method, a paid preparer or an individual who has a valid power of attorney (“POA”) filed with the Department on your behalf, may file the application on your behalf.
    2. File an amended 2019 Form D-400 and correct one or more of the conditions that caused you to be ineligible for the automatic grant. (For information on eligibility conditions, see “Eligibility Conditions Required to Receive an Automatic Grant Award,” below. For information on how to file an amended Form D-400, see the instructions for filing Form D-400 for tax year 2019 available from the Department’s website.)

Eligibility Conditions Required to Receive an Automatic Grant Award. In order to be eligible to receive an automatic grant payment, you must meet both of the following conditions:

(a) Report on Form D-400 for calendar year 2019 that either you or, if filing a joint return, your spouse, was a resident of North Carolina for the entire 2019 calendar year.

(b) Report at least one qualifying child on Line 10a of Form D-400 for calendar year 2019.

Qualifying Child:

  1. In order to be eligible for the grant, your child had to be a “qualifying child” for purposes of the federal child tax credit for tax year 2019. In general, a child qualifies you for the federal child tax credit if the child meets all of the following conditions:
  2. The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
  3. The child was 16 or younger (under age 17) at the end of 2019.
  4. The child did not provide over half of his or her own support for 2019. 
  5. The child lived with you for more than half of 2019.
  6. The child is claimed as a dependent on your 2019 federal tax return if you are required to file a return.  If you did not file a 2019 federal tax return, the child would be claimed as a dependent on your 2019 federal tax return had you filed a return.
  7. The child does not file a joint 2019 federal tax return. 
  8. The child was a U.S. citizen, U.S. national, or U.S. resident alien.

Internal Revenue Service interactive tool: Is My Child a Qualifying Child for the Child Tax Credit?

 

Last Updated: March 9, 2021

Application

Application

Application Process 

Step 1: Review the eligibility requirements completely to determine if you can apply. IMPORTANT: If you have already received the $335 check, you are not eligible to apply. 

Eligibility at a glance

Step 2: If you are eligible, you can submit an application . Professional tax preparers may also file an application on behalf of qualifying individuals. All applications must be submitted online or postmarked by July 1, 2021.

Last Updated: May 25, 2021

Payments

Payments

Payments 

Checks will be mailed to most qualifying Extra Credit Grant recipients 2-4 weeks after the application is submitted. Anyone who does not qualify will receive a letter from the Department.

Extra Credit Grant checks re-validated because of updated mailing addresses may be cashed at any financial institution or businesses that allow check cashing. While checks list the State Treasurer on them, the Department of State Treasurer cannot cash or assist with the checks.

FAQs

FAQs

Extra Credit Grant Program FAQs

Section I: Eligibility and Qualification for the Extra Credit Grant Program

What is the extra credit grant?

The extra credit grant is a $335 payment to you from the State of North Carolina. If you qualify, you will receive a $335 payment.

The payment is to help families with qualifying children in North Carolina by providing economic support to assist with virtual schooling and child-care costs during the COVID-19 pandemic.

What are the eligibility requirements for the Extra Credit Grant Program?

The following individuals with a qualifying child who was 16 or younger at the end of 2019 who have not already received the grant payment from the NC Department of Revenue may be eligible to receive the grant:

  1. If you did not file a 2019 North Carolina Individual Income Tax Return, Form D-400, solely because your federal gross income (and your spouse’s federal gross income, if applicable) for 2019 did not exceed the State’s filing requirement for your filing status for 2019 (as printed on page 1, Part 2 of Form NC-1105), you may be eligible to receive an Extra Credit Grant payment under the extended Program if you meet all of the conditions of the Program and you apply for the grant using Form NC-1105 on or before July 1, 2021.
  2. If you filed a 2019 North Carolina Individual Income Tax Return, Form D-400, on or before October 15, 2020, you may be eligible to receive an Extra Credit Grant payment under the extended Program if you meet all of the conditions of the Program and you perform one of the following actions on or before July 1, 2021:
  • File Form NC-1105 and complete Parts 1 and 3 of the application. You can ONLY complete Part 3 of Form NC-1105, if did not previously receive an automatic grant award because you did not report a qualifying child on line 10a of your timely filed 2019 Form D-400.
  • File an amended 2019 Form D-400 and correct one or more of the conditions that caused you to be ineligible for the automatic grant. Specifically, you must  meet both of the following conditions:
    • Report on Form D-400 for calendar year 2019 that either you or, if filing a joint return, your spouse, was a resident of North Carolina for the entire 2019 calendar year.
    • Report at least one qualifying child on Line 10a of Form D-400 for calendar year 2019.

I was not a North Carolina resident for the entire 2019 calendar year. Do I qualify for the grant?

No. If you were not a resident of North Carolina for all of calendar year 2019, you do not qualify for the grant unless you are married, and your spouse was a resident of North Carolina for all of calendar year 2019, and you filed a joint 2019 North Carolina individual income tax return on or before October 15, 2020.

I filed my 2019 North Carolina individual income tax return after October 15, 2020. Can I still qualify for the grant?

In order to be eligible for the grant, individuals subject to North Carolina income tax for tax year 2019 were required to file a State tax return on or before October 15, 2020.

How do I determine if my child is a qualifying child?

In order to be eligible for the grant, your child had to be a “qualifying child” for purposes of the federal child tax credit for tax year 2019. In general, a child qualifies you for the federal child tax credit if the child meets all of the following conditions:

  1. The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
  2. The child was under age 17 at the end of 2019.
  3. The child did not provide over half of his or her own support for 2019.
  4. The child lived with you for more than half of 2019.
  5. The child is claimed as a dependent on your 2019 federal tax return.
  6. The child does not file a joint 2019 federal tax return.
  7. The child was a U.S. citizen, U.S. national, or U.S. resident alien.

For more information, see Internal Revenue Code Section 24 or federal Publication 972, Child tax Credit and Credit for Other Dependent. The Internal Revenue Service also provides an Interactive Tax Assistant tool “Is My Child a Qualifying Child for the Child Tax Credit?” This interactive tool may help you determine if your child is a qualifying child for purposes of the federal child tax credit for tax year 2019

Does my child have to be a certain age in order for me to be eligible to receive the grant?

Yes. To qualify for the grant, a child must be under the age of 17 (16 or younger) at the end of 2019.

I am eligible for the grant. How much will I receive?

If you are eligible for the grant, you will receive a one-time payment of $335.

I am eligible for the grant. I have two qualifying children. Will I receive $335 for each qualifying child?

No. The grant amount is $335 per eligible individual, not for each qualifying child.  The Department of Revenue does not control the amount of the grants.  The law provides the grant amount of $335 per eligible individual, even if the eligible individual has two or more qualifying children. 

I did not receive a North Carolina child deduction on my 2019 North Carolina individual income tax return because my 2019 gross income exceeded the State’s threshold for my filing status. Do I qualify for the grant?

It depends. You will qualify to receive the grant if you meet all of the eligibility requirements, including the requirement that you must be allowed a federal child tax credit for calendar year 2019. If you did not receive a federal child tax credit for calendar year 2019 because the federal tax credit was eliminated under federal law, you are not eligible for the grant. For federal tax purposes, the 2019 federal child tax credit is reduced when a taxpayer’s modified adjusted gross income exceeds $400,000 for individuals who file a joint tax return with their spouse, and $200,000 for all other filing statuses.

For more information, see federal Publication 972, Child Tax Credit and Credit for Other Dependents.

I am divorced. Am I eligible to receive the grant?

This determination is based on federal law. In addition to meeting other eligibility requirements, generally, your child must be claimed by the “custodial parent” which is the parent with whom the child lived for the longer period of time during the year. However, the custodial parent may execute Federal Form 8332 which states that the custodial parent will not claim such credit and the noncustodial parent can attach the form and claim the child. Whichever parent or guardian has the authority to claim the child on their federal income tax return will have the authority to claim the child on the state income tax return and would be able to receive the grant.

For more information, see federal Publication 972, Child Tax Credit and Credit for Other Dependents.

I previously filed my 2019 North Carolina individual income tax return and I reported my filing status as “married filing separately.” Do I qualify for the grant?

You will qualify for the grant if you meet all of the eligibility requirements.

I filed my 2019 North Carolina individual income tax return and I reported my filing status as “married filing jointly.” Will my spouse and I each receive a grant?

No. For purposes of eligibility for the grant, spouses who filed a joint 2019 North Carolina individual income tax return are treated as one eligible individual.

My only source of income for tax year 2019 was social security.  The amount of social security benefit I received is greater than the threshold amount for my filing status for tax year 2019 as reflected on the table printed on the application (Form NC-1105). Am I eligible for the grant?

It depends. Federal gross income means all income you received in the form of money, goods, property, and services that isn’t exempt from tax.

In general, if your Social Security benefit is your only source of income, then Social Security benefits are not considered federal taxable income. For more information, contact a tax professional or see Publication 17, Tax Guide for Tax Year 2019, available on the Internal Revenue Service website.

I filed my 2019 North Carolina individual income tax return.  I did not report a qualifying child on Line 10a, even though I had a qualifying children for whom I was allowed a federal child tax credit on my 2019 federal return. Am I eligible to receive the grant payment?

Yes, you are still eligible.  To receive the grant payment you must complete one of the following options:

  • Complete Part 1 and Part 3 of Form NC-1105, Application for Extra Credit Grant Program (NC-1105) or;
  • Have a POA or Paid Tax Preparer complete  Part 1 and Part 3 of Form NC-1105,  Application for Extra Credit Grant Program (NC-1105) or;
  • File an amended 2019 State individual income tax return, correcting line 10a

Whichever option you choose, the application or the amended return must be completed and submitted to the Department on or before July 1, 2021.

I filed my 2019 North Carolina individual income tax return.  I did not report a qualifying child on Line 10a, even though I had a qualify child for whom I was allowed a federal child tax credit on my 2019 return.  I plan to amend my 2019 D-400 to report a qualifying child.  How do I complete an amended return to receive the grant payment?

You do have the option to complete the Application for Extra Credit Grant Program (NC-1105) instead of filing an amended return (see above FAQ).  However, to amend your return to change line 10a, you must follow the steps below:

  • Complete an amended 2019 Form D-400, along with the required Form D-400 Schedule AM.
  • On Form D-400, make the necessary changes to the original Form D-400 by showing the corrected number of qualifying children on Line 10a.
  • On Form D-400 Schedule AM, fill in the “Other” circle as the reason for amending your tax return and write in “Extra Credit Grant Program” as the detailed explanation for the change.
  • Provide a copy of your 2019 federal tax return and any accompanying federal form or statement that supports the changes made to Line 10a on Form D-400. The supporting documentation must include the name, age, and social security number of each qualifying child for whom you were allowed a federal child tax credit for tax year 2019.

If you file the amended return by mail, write “Extra Credit Grant Program” at the top, right hand corner of the 2019 Form D-400. The amended return and any accompanying documents must be postmarked on or before July 1, 2021.

For detailed information on how to file an amended 2019 individual income tax return, see Form D-401, North Carolina Individual Income Tax Instructions for Tax Year 2019.

I filed a 2019 State tax return on or before October 15, 2020. I, and my spouse, were residents of NC for the entire 2019 calendar year. I had a qualifying child that I reported on line 10a. I didn’t receive a grant payment.  Why didn’t I receive a payment when it looks like I qualified for one?  

Check the State tax return you filed for calendar year 2019 to see if you indicated on the return that you, and your spouse, were residents of North Carolina for the entire year.  In addition, check to see if the number of qualifying children you reported on line 10a was greater than zero. 

If you did not indicate that you, or your spouse if filing a joint return, were full-time NC residents, you must file an amended 2019 Form D-400 to correct the information.  If you reported zero on line 10a but had at least one qualifying child for whom you were allowed a federal tax credit in 2019, then you may either amend your 2019 D-400 to correct the information, or you may apply for the grant using Form NC-1105. (See the instructions for Form NC-1105 for further assistance.)

My spouse is active duty military. Are there special rules for determining if I am a resident of North Carolina?

Yes. The Servicemembers Civil Relief Act provides that a spouse shall neither lose nor acquire domicile or residence in a state when the spouse is present in the state solely to be with the servicemember in compliance with the servicemember’s military orders if the residence or domicile is the same for both the servicemember and the spouse. For additional information see the Department’s website.

My spouse is active duty military.  I am in North Carolina solely to be with my service member spouse.  We have two qualifying children under the age of 17.  Although my spouse and I lived in North Carolina for the entire calendar year 2019, neither my spouse nor I were residents of North Carolina.  During 2019, I worked in North Carolina, but I did not file a 2019 North Carolina individual income tax return because my income was not subject to North Carolina tax under the Veterans Benefits and Transition Act of 2018.  Am I eligible to receive the child grant?

No. In order to be eligible for the child grant, an individual who applies for the child grant must be a resident of North Carolina for the entire 2019 calendar year.

My spouse is active duty military.  My spouse and I lived in North Carolina for the entire calendar year 2019.  We have two qualifying children under the age of 17.  Although my spouse was not a resident of North Carolina in 2019, I was a resident of North Carolina for the entire calendar year 2019.  I did not file a 2019 North Carolina individual income tax return solely because my gross income for 2019 did not exceed the State’s filing requirement for my filing status.  Am I eligible to receive the child grant?

Yes.

Section II: Applying For and Completing the Application for the Extra Credit Grant

Where can I submit the Extra Credit Grant Program application? 

You can apply for the grant online or print the form and mail it in.

When is the last day I can submit my Extra Credit Grant Program application and be eligible to receive the grant? 

The deadline under the law to complete an online or paper application is July 1, 2021.  Payments will be mailed to qualifying taxpayers and applicants using the address on the individual’s 2019 State income tax return, unless an updated address is available, or the address on the individual’s application.

I missed the deadline to file my 2019 State tax return.  Can I submit an application to get the grant? 

No. The October 15, 2020 deadline for filing 2019 returns cannot be changed under the law. 

Can a paid preparer or Power of Attorney (POA) complete an application on my behalf?  

It depends.  If you filed a 2019 State income tax return Form D-400, on or before October 15, 2020, but you did not receive an automatic grant award solely because you did not report a qualifying child on line 10a of the Form D-400, then a paid preparer or POA can complete Form NC-1105 on your behalf.

How do I know the Department has received my online application?

If you've received an email confirmation with the subject line 'Completed: Please DocuSign: NC-1105 DocuSign Version 5.0 pdf.pdf' then the Department is in receipt of your application.  If you haven't received that email confirmation then you need to re-submit an online application.

I received an email with the subject line "Expiration Pending: Please DocuSign: NC-1105 A DocuSign Version 5.0.pdf".  Why did I receive this email and what should I do?  

You received the email because you opened an application for the Extra Credit Grant on DOR's website through DocuSign but did not complete it.  The email is an automatic email reminder.  If you do not take action and complete the application, you will receive an additional email notification with the subject line "Voided: Please DocuSign: NC-1105 DocuSign Version 5.0.pdf".  This is another automatic email to close out incomplete applications in DocuSign.  If you do not intend to complete the application, you may ignore these emails as no further action is required.

Can you mail the application for the Extra Credit Grant Program to me?  

Yes.  However, the application is available online.  Please call the Department at 1-877-252-3052 to have the application mailed to you.  You can also file an application online. 

Can I drop off my competed Extra Credit Grant application at one of the Department's service centers?  

Yes, see the list of service centers here.  In addition, the application can be filed online or mailed to PO BOX 471, Raleigh, NC 27602-0471 on or before July 1, 2021.

Section III: Receiving the Extra Credit Grant

When will the Department issue grants? 

The Department will issue grant payments to eligible individuals as soon as possible. The latest payment distribution information is posted to the Payment tab of the Department's Extra Credit Grant page.

How will I receive the grant?

All grant payments will be issued by check to the address listed on either your 2019 State individual income tax return or your application. If your address has changed, submit a change of address request. 

Will the grant be direct deposited into my bank account?

All grant payments will be issued by check.

Can I check the status of my grant payment? 

The Department’s employees do not have the ability to check the status of individual payments at this time.

What if I still have not received my grant payment from my initial application? Should I reapply?

You should verify that you meet all of the eligibility requirements to receive the grant. If you are eligible for the grant and have not received it, you should contact the Department immediately at 1-877-252-3052.

Will I receive the grant if I currently owe money to the Department?

Yes. You will receive the grant if you meet all of the eligibility requirements, regardless if you owe money to the Department. No state tax debt that would normally offset a tax refund will reduce the amount of the grant.

I received my grant check. How much time do I have to deposit the check?

You have 90 days from the date the check was written to deposit the check.  

I received a revalidated grant check in the mail. Where can I cash the check?

Extra credit grant checks may be stamped 'validated for payment if presented to State Treasurer'. This stamp revalidates the check date for payment or deposit and may be presented to any financial institution or to businesses that allow check cashing. 

While checks list the State Treasurer on them, the Department of State Treasurer cannot cash or assist with the checks.

My address has changed since I filed my last North Carolina individual income tax return. What do I need to do to change or correct it to receive my grant?

Submit a change of address request immediately to provide an updated address for the purposes of receiving the grant. 

Are there any guidelines for how I should spend this grant?

The purpose of the grant is to assist eligible individuals with the additional virtual schooling or child care expenses incurred due to COVID-19.

I am not entitled to a grant but I received one in error.  What should I do?

If you receive a grant in error you must send the funds back to the Department using this mailing address:

NCDOR
Attn: Financial Services: Chief Financial Officer
PO Box 871
Raleigh, NC 27602

Section IV: Information for the Extra Credit Grant Program Extension

Is this a new grant program?  Can I complete an application and get another grant payment?

No. Under legislation signed into law February 10, 2021, individuals who missed the original deadline may be eligible to receive the $335 grant payment.  Importantly, individuals who have already received the grant payment DO NOT qualify for additional grant payment.

Who is eligible to receive the grant payment under the extended Extra Credit Grant Program?

  • Qualifying individuals who were not required to file a 2019 state tax return and have not already received the $335 grant.

Individuals who did not file a 2019 state tax return solely because the individual’s federal gross income for the 2019 taxable year did not exceed the state’s filing requirements for the individual’s filing status for tax year 2019, and who missed the Program’s original deadline. Individuals may apply for the grant on or before July 1, 2021. The application will be posted on this website as soon as possible.

  • Eligible individuals who filed a 2019 state tax and did not receive the $335 grant.

Taxpayers who filed a 2019 state tax return on or before October 15, 2020, but who did not receive an automatic grant payment because the taxpayer did not meet all of the eligibility conditions necessary to receive the grant by the program’s original deadline. Depending on the condition the taxpayer failed to meet, the taxpayer may be required to amend their 2019 State return or the taxpayer (or the taxpayer’s paid preparer) may be allowed to apply for the grant by submitting an application by July 1, 2021. The application will be posted on this website as soon as possible.

 

Section V: Miscellaneous  

Will I owe the Internal Revenue Service tax on the grant?

Whether the grant is included in federal gross income is determined under federal law. Generally, however, all income is taxable for federal tax purposes unless specifically exempted by federal law.

Will the grant be included in my North Carolina taxable income?

No. The grant is not subject to North Carolina individual income tax. In calculating North Carolina taxable income, you may deduct the amount of the grant if the grant is included in federal adjusted gross income. Please review for the 2020 Individual Income Tax Instructions, Form D-401, for further guidance.

I do not want to fill out an application or amend my 2019 State return to receive the grant payment.  Can I take a deduction on my 2020 State return? 

No. You cannot deduct the amount of the grant payment on your 2019 State income tax return instead of filing an application or amending your 2019 State return. The grant payment is not a refund of State tax.

What is the difference between the North Carolina grant and the stimulus check I received from the federal government?

The Extra Credit Grant Program is a State program administered by the Department of Revenue. The purpose of the grant is to help families with qualifying children in North Carolina by providing economic support to assist with virtual schooling and child-care costs during the COVID-19 pandemic. The Economic Impact Payment was a federal program administered by the Internal Revenue Service on behalf of the US government.The federal stimulus check is a refund of federal income tax.  The state grant check is not a refund of state income tax.

My spouse is deceased. Am I eligible to receive the grant?

If you meet all of the eligibility requirements, you will receive a grant even if your spouse is deceased.

Will an individual who is now deceased who had a qualifying child qualify receive the grant?

An individual that meets all of the eligibility requirements will receive a grant even if the individual died prior to the issuance of the grant.

I am an enrolled member of a federally recognized Indian tribe. I have a qualifying child. Am I eligible to receive the grant?

It depends. You will qualify to receive the grant if you meet all of the eligibility requirements.

Why did I receive a letter stating my application for the grant was denied?

The Department determined that you were not eligible to receive the grant payment.  You were not eligible for the grant payment because you failed to meet at least one of the following requirements:

1. You did not complete the application in its entirety.

2. You did not meet all of the eligibility conditions necessary to receive the grant.

The denial letter provides the reason you were denied a grant payment.

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