1040-NC: Charitable contribution credit

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To calculate the charitable contributions credit, an amount needs to be entered on the federal A screen, located under the Itemized Deductions folder, in the Charitable Contributions section. If an amount has not been entered on the federal A screen, enter the amount of charitable contributions on the Credit screen, located under the Credits folder within the NC input screens.

Only those claiming the standard deduction at the Federal level may claim the credit. The application does not calculate a credit if the federal return is taking the itemized deductions.

The credit for charitable contributions is 7% of the amount by which the contributions exceed 2% of the federal adjusted gross income (AGI). The application does not calculate the credit if the contributions are less than 2% of federal AGI.

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