RALEIGH, N.C. (WNCN) — Changes to the state tax law could impact people filing their returns at the last minute.
Under the new tax law, military personnel will no longer pay taxes on their retirement benefits. This applies to those who have served for at least 20 years or those who are medically retired and their survivors.
Another change for this year’s taxes is that the child tax credit deduction will increase by $500 per child.
More changes are ahead in the coming years. The law says personal income tax is still 5.25 percent of your income but that will go down to 4.99 percent for tax year 2022 so you should save some money. Also, the standard deduction will go up, which tax experts say will provide the most relief for low-income households.
If you have questions about the process: call the state revenue customer service line at 1-877-252-3052. If you have a question about your refund, call 1-877-252-4052.