As part of the North Carolina Coronavirus Relief Act 3.0, the North Carolina Dept. of Revenue is administering grants through the Extra Credit Grant Program to help families with qualifying children pay for virtual schooling and child-care costs during the pandemic with a $335 payment.
The NCDOR is now accepting online and mail-in applications for eligible individuals who were not required to file a 2019 state individual income tax return. The deadline to apply is Thursday, October 15, 2020. If you have already filed a state return and reported a qualifying child, you do not need to take any action to receive this grant.
Administered by the North Carolina Dept. of Revenue, the grant amount is $335 total for each eligible individual, even if the individual has two or more qualifying children.
Eligible individuals who have filed their state return and reported at least one qualifying child do not need to take any action to receive the grant.
NCDOR will award a grant to eligible individuals who report at least one qualifying child (age 16 or younger) on their 2019 state individual income tax return. Spouses who file a joint state return count as one individual.
Individuals who did not file state tax return because of gross income level can apply for Extra Credit Grant by Oct. 15
An individual who did not file a 2019 state tax return solely because the individual’s gross income for the 2019 taxable year did not exceed the state filing requirements for the individual’s filing status (generally $10,000 per year if single and $20,000 per year if married) may apply for a grant.
An applicant must meet the all requirements referenced in the law, including having at least one qualifying child age 16 or younger for the 2019 calendar year and applying for the grant by Thursday, Oct. 15, 2020.
NCDOR says tax prep software error external to the agency may have impacted some automatic payments of Extra Credit Grant
The NCDOR has become aware that some taxpayers with qualifying children who filed a 2019 Form D-400 might not be eligible for the automatic payment of the $335 Extra Credit Grant due to a tax preparation software error external to the NCDOR.
The NCDOR is investigating the issue further and reaching out to tax preparation software vendors to determine which tax preparation software is affected and how widespread the issue may be. The NCDOR is also reaching out to certified public accountants as well.
More information can be found at the NCDOR’s notice online.