On September 4th, Governor Roy Cooper signed into law the Coronavirus Relief Act 3.0, which was passed by the North Carolina General Assembly. The law includes the Extra Credit Grant program to be administered by the North Carolina Department of Revenue (NCDOR).

According to the law, the purpose of the program is to “use funds from the Coronavirus Relief Fund to help families with qualifying children in North Carolina by providing economic support to assist with virtual schooling and child-care costs during the COVID-19 pandemic.”

The grant amount is $335.00 total for each eligible individual with one or more qualifying children (as defined by federal tax law).

NCDOR will award a grant to eligible individuals who report at least one qualifying child (age 16 or younger) on their 2019 state individual income tax return; spouses who file a joint state return count as one individual.

Eligible individuals who have previously filed their state return and reported at least one qualifying child do not need to take any action to receive the grant. HOWEVER, we recommend you review your copy of your 2019 NC income tax return to verify this (NC Form D-400, Page 2, Line 10a).  We have learned that some tax software did not calculate this correctly – you have until October 15th to correct (see NCDOR’S link for further guidance).

An individual who did not file a 2019 state tax return solely because the individual’s gross income for the 2019 taxable year did not exceed the state filing requirements for the individual’s filing status (generally $10,000 per year if single and $20,000 per year if married) may apply for a grant.

An applicant must meet the all requirements referenced in the law, including having at least one qualifying child age 16 or younger for the 2019 calendar year, to apply for the grant by October 15, 2020.

Please see NCDOR’s website for further information or contact our firm with any questions you may have.

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