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Unemployment compensation exemption for North Carolina

tscott1205
Level 4

Has anyone heard if North Carolina is still taxing unemployment compensation for 2020 recipients. Rumor was they were going to change law and follow the federal. 

Also heard they were going to follow the federal on the PPP loan proceeds taxability. 

As of April 23, 2021 I have not heard this as definitive.

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dkh
Level 12
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tscott1205
Level 4

Thank you for the reply.

However the NC general assembly was to meet last week and take this subject up. We heard from several sources that the consensus was they were going to change their stance and follow the federal rule.  

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dkh
Level 12

Can't help you there.  I've been following the Indiana General Assembly for weeks watching the bill that will exclude unemployment from Indiana income.   I'm sure you can do the same for NC.   https://www.ncleg.gov/

Frustrating as h3!!  waiting on the bill to pass. 

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qbteachmt
Level 15

"However the NC general assembly was to meet last week and take this subject up. We heard from several sources that the consensus was they were going to change their stance and follow the federal rule."

Have you seen that activity happen, and be Signed by your Governor?

"was" and "were" don't mean a thing until they Happen. The link given is from April 9. If you want to Hold your clients' returns to see what happens, you've got plenty of time to do so. Or, as NC DOR tells you already, File, and if they decide on the change and how they decide on the change, then you would Amend. That's what NC tells you.

No one here can predict any more than this info that you can watch for. Then, if you see a change, please come back and update your peer users on the change.

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"Level Up" is a gaming function, not a real life function.
sjrcpa
Level 15

This is the NC bill regarding PPP.

https://legiscan.com/NC/drafts/S104/2021

Introduced 2/16/2021 and has gone nowhere.


ex-AllStar