Article: 50663
North Carolina conforms to the federal tax law as it existed on January 1, 2023. The federal tax law changes passed July 4, 2025, do not apply when calculating North Carolina income tax. As a result, you may need to add back or adjust the AGI amount that is carried from the federal return to the NC return. See the NC DOR Notice for details.
In 1040.com, adjust the AGI that is used for NC purposes by following these steps.
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- Expand the North Carolina Forms drop-down menu.
- Click on the General tab.
- Select Federal Nonconformity Adjustment.
- Use the box Federal adjusted gross income to adjust the amount that should be used for the NC return. A positive value will increase the AGI used on NC D-400, line 6. A negative will decrease the amount.
- Click Save.
- Click the link: I’d like to see the forms I’ve filled out or search for a form again.
- Expand the North Carolina Forms drop-down menu.
- Click on the Other tab and select PDF Attachments. Complete this screen as follows, and click Save:
- Reference Source: NONCONFORMITY
- Description: Federal Nonconformity Changes
- File Name: TY25NCFAGICALC.PDF
- Click on File and select the Finish my North Carolina return button.
- Click Show other North Carolina issues.
- Click Attach Now.
- Attach a PDF that explains the adjustment.
Note An adjustment is not needed for the following deductions as they do not impact the Federal AGI calculation (Form 1040, line 11a):
- “No Tax on Tips”
- “No Tax on Overtime”
- “No Tax on Car Loan Interest”
- Enhanced Deduction for Seniors
Note This new tax bill, was signed into law on July 4, 2025. The One Big Beautiful Bill Act (OBBB or OB3) is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used, but they refer to the same set of tax changes.