The North Carolina Department of Revenue (NCDOR) issued a reminder today that applications for $335 Extra Credit Grants are due by Thursday, Oct. 15. The program, which Governor Roy Cooper signed into law in September as part of the Coronavirus Relief Act 3.0, will help families with qualifying children pay for virtual schooling and child-care costs during the COVID-19 pandemic.
While taxpayers who reported at least one qualifying child (age 16 or younger) on their 2019 state individual income tax return will receive the payment automatically, some North Carolinians who were not required to file a return are still eligible, but must apply by Oct. 15, 2020 in order to receive the grant.
The online and printable paper applications are on the agency website.
To be eligible to apply for a grant, an individual must not have filed a 2019 state tax return solely because the individual’s gross income for the 2019 tax year was below the minimum income level at which the individual was required to file a return (generally $10,000 per year if single and $20,000 per year if married). To receive the grant, an applicant must meet all the other requirements referenced in the law, including having at least one qualifying child (age 16 or younger) for the 2019 calendar year. Applications must be submitted online or postmarked by Oct. 15, 2020.
Individuals who have filed their 2019 state return (or file by Oct. 15) and report a qualifying child on their return do not need to take any action to receive the grant.
Some taxpayers with qualifying children who filed a 2019 state tax return might not be eligible for the automatic payment of the grant due to a tax preparation software error external to the NCDOR. The law requires an individual to report at least one qualifying child (age 16 or younger) on line 10a of their 2019 tax return to receive an automatic payment. Some taxpayers who may otherwise be eligible for an automatic payment appear to have had a “0” incorrectly reported on line 10a due to the software error. Those affected taxpayers may file an amended state return by Oct. 15, 2020 and list a qualifying child to automatically receive the payment.
The NCDOR advises all taxpayers to review line 10a of Form D-400 of their 2019 tax return as filed to determine if they will receive the grant automatically, particularly if they used a paid tax preparer.
The NCDOR will send grants as soon as possible, but no later than Dec. 15, 2020. Payment details will be posted on the agency website as soon as they are available.
Full information and answers to Frequently Asked Questions are available on the agency website.