This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at 2020 tax changes in North Carolina. Mike, a new year brings many new things, and often part of those new things is tax changes. What’s in store for North Carolina taxpayers in 2020?
Mike: Summary Answer
- Biggest item is a continued expansion of the standard deduction for paying income taxes
- This is amount of earnings a household can have and not pay NC income tax
- Will rise for married couple from $20,000 to $21,500 for married couple filing jointly, and from $10,000 to $10,750 for single person households
- 7.5% increase, so will add some more households who are under the limit
- If under the limit, you pay no state income tax
- If above the limit but have personal deduction that don’t exceed those amounts, still want to take them
- Some other changes, mainly in patching some loopholes in the internet sales tax
- Part of philosophy of expanding the base but lowering the rates
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.