NC-4 state tax form

RodneyWright · **Posted:** Thu Dec 05, 2013 5:09 pm

Anyone heard anything about this? My wife called all in a panic. She's w/ Wake Co schools and they are being instructed to provide a new NC-4 state withholding form. No exemptions allowed due to the new tax over haul by McCroy.

I'm a little in the dark here. My CPA is out, so I have no information on this. You heard anything?

Jeremy Ellison · **Joined:** Fri May 13, 2011 5:01 pm **Posts:** 186

Yeah, we had to make all our employees fill them out. Something changed in NC, I don't think it's anything to worry about.

Ryan Holton · **Posted:** Thu Dec 05, 2013 5:35 pm

http://www.news-record.com/news/local_n ... a3ee5.html

Chris Halweg · **Posted:** Fri Dec 06, 2013 1:07 pm

Yes, for us everyone defaults to single with zero dependents unless we change it back mid December.

JamesShort · **Posted:** Fri Dec 06, 2013 4:08 pm

I'll be damned if they are going to make me over withhold. I always under withhold around 5-8%.

RodneyWright · **Posted:** Fri Dec 06, 2013 4:20 pm

JamesShort wrote:

I'll be damned if they are going to make me over withhold. I always under withhold around 5-8%.

Let me know how that works out for you....

DickRasmussen · **Posted:** Fri Dec 06, 2013 4:42 pm

JamesShort wrote:

I'll be damned if they are going to make me over withhold. I always under withhold around 5-8%.

Did you read the article? There are no more exemptions for dependents afaik. Before you spend your lower 2014 state tax rate "benefit" you might want to wait until 2015 when the numbers are crunched for your circumstances . . . unless, of course, you are in a very high income bracket.

I fully expect my State tax bill to increase as a result of this "reform".

Dick

RodneyWright · **Posted:** Fri Dec 06, 2013 5:28 pm

DickRasmussen wrote:

JamesShort wrote:

I'll be damned if they are going to make me over withhold. I always under withhold around 5-8%.

Did you read the article? There are no more exemptions for dependents afaik. Before you spend your lower 2014 state tax rate "benefit" you might want to wait until 2015 when the numbers are crunched for your circumstances . . . unless, of course, you are in a very high income bracket.

I fully expect my State tax bill to increase as a result of this "reform".

Dick

Finally talked to my CPA. He said most likely in the short term your withholding WILL go up even w/ the adjusted tax rates.

steve remchak · **Posted:** Sat Dec 07, 2013 12:04 am

But at least they finally passed that "no dancing in public" law.............

JamesShort · **Posted:** Mon Dec 09, 2013 2:35 pm

DickRasmussen wrote:

JamesShort wrote:

I'll be damned if they are going to make me over withhold. I always under withhold around 5-8%.

Did you read the article? There are no more exemptions for dependents afaik. Before you spend your lower 2014 state tax rate "benefit" you might want to wait until 2015 when the numbers are crunched for your circumstances . . . unless, of course, you are in a very high income bracket.

I fully expect my State tax bill to increase as a result of this "reform".

Dick

What article? I don't care what the news reports. The NC-4 (like the W-4) is a bogus amalgam of bullshit number crunching that rarely makes sense to anyone. Something like 80% of people over withhold every year and get a refund (Americans are really bad at proactively saving so this forces them to save and yet they bitch about their take home pay

). I'm not one of those people, I hate giving the US or NC a free loan and waiting on getting a refund and reading about how there are delays because the US or NC overspent the money they were not due and can't pay out refunds for another month so I always under withhold and send in a, usually, small check and I'm done with them. Over the years I have got very good at doing my withholding so that I don't get a refund. This is through doing 1-2 more allowances than those stupid ass forms would dictate and then adding a dollar amount of additional withholding. And I usually can check half way and 3/4 way through the year to see if I'm on track and then readjust the NC-4/W4 additional withholding appropriately. If I under withhold too much (10%+) then I pay a penalty, so that's on me.

Point being is that I will submit my NC-4 however I want regardless of exemptions for dependents etc going away and I will pay 90-100% of what I owe for the year by Dec 31st and I'll send them a check for the rest in April.

All this is really about is that the NC DOR are blindsighted and they don't know how to adjust their withholding calculators to do an intelligent withholding schedule with the new law changing, so they are going to do a bulk reset everyone to Single and 0 and let things fly a bit to see how tax revenue works out and then maybe tweak a few times during the year. Well I'm not down for that, so I'll do my own math to see how much I'll owe for the whole year with the new marginal rates and absence of the personal exemption and itemization rule and then do my NC-4 such that I'll withhold about 95% of that.

Andrew Jonell · **Joined:** Mon Mar 23, 2009 6:43 pm **Posts:** 1350

I told Rodney that this was small government in action over Facebook last week, but I've gotten pretty good results with the default allowances the past few years.

2011: Received a check for $2
2012: Received a check for $1
2013: Sent a check for $10

RobLupella · **Posted:** Mon Dec 09, 2013 2:59 pm

It won't matter for me. We take 0 dependents and withhold extra. Until we did that we would do the opposite of most people and end up paying thousands at the end of the year. I don't mind using the government's money but not that much.

Rodney, your CPA should know how much you should withhold based on your income and what you claim to put you where you want to be when tax time rolls around.

JamesShort · **Posted:** Mon Dec 09, 2013 3:13 pm

Andrew Jonell wrote:

I told Rodney that this was small government in action over Facebook last week, but I've gotten pretty good results with the default allowances the past few years.

2011: Received a check for $2
2012: Received a check for $1
2013: Sent a check for $10

When you have a house (mortgage/property taxes), contribute heavily to pre-tax retirement (in addition to the post-tax options) and buy/sell securities periodically, then the default allowances never work

.

RodneyWright · **Posted:** Mon Dec 09, 2013 3:30 pm

I heard from my CPA. Bottom line is everybody now can only claim 0 deductions. You have no options, at least in my case.

Ryan Holton · **Posted:** Mon Dec 09, 2013 3:38 pm

RodneyWright wrote:

I heard from my CPA. Bottom line is everybody now can only claim 0 deductions. You have no options, at least in my case.

Kids under 17 still get some deduction love.

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