NCACPA is partnering with the NC Department of Revenue on a pilot project that will make it easier for tax professionals to help clients who missed out on last year’s Extra Credit Grant due to a tax preparation software error.
COVID-19 relief legislation passed in 2020 required an individual to report at least one qualifying child (age 16 or younger) on Line 10a of their 2019 North Carolina Individual Income Tax Return (Form D400) to receive a $335 Extra Credit Grant. Many taxpayers who were otherwise eligible for the automatic payment had an “0” or blank field incorrectly reported on Line 10a due to the software glitch. Until recently, the only resolution had been to file an amended 2019 return by October 15, 2020.
Under legislation signed into law February 10, 2021, taxpayers impacted by the 10a issue may apply for the grant through May 31, 2021. At the urging of NCACPA, the NCDOR will allow bulk uploads of applications in lieu of amended returns. This option is only available to professional tax preparers and may only be used to submit two or more applications on behalf of individuals who encountered the Line 10a issue.
NCACPA is partnering with the NCDOR to pilot the bulk upload process to ensure that it is user-friendly and accessible to tax professionals. Once the pilot project concludes, the NCDOR plans to make the bulk upload process available to all professional tax preparers by mid-March.
NCACPA will share all information and resources with our members as soon as it is available from the NCDOR. They have posted tentative information and will continue to update it at https://www.ncdor.gov/extracredit.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.