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NC Legislature Passes Coronavirus Relief Act 3.0

On September 4, 2020, the North Carolina (NC) Legislature passed the Coronavirus Relief Act 3.0. Included in this new law is the Extra Credit Grant program, which makes available a $335 grant to eligible NC taxpayers. The grant is designed to provide economic support for childcare costs and virtual learning expenses incurred during the COVID-19 pandemic by NC families with at least one qualifying child (under age 17 at the end of 2019). The grant amount of $335 is determined per return and not per child.

Federal and NC tax law currently provides a child tax credit and child deduction, respectively, with differing eligibility requirements.

  • If you did not qualify for the federal tax credit, you are not eligible for the new NC grant and you will not receive payment.
  • If you qualified for BOTH tax benefits on your previously filed 2019 tax return, no action is required on your part. You should automatically receive the one-time payment by December 15, 2020.
  • If you qualified for the federal child tax credit, but not the NC child deduction (married filing joint, adjusted gross income greater than $120,000 but less than a phase-out range beginning at $400,000), you will need to file an amended NC return by October 15, 2020. The amended return will need to be mailed with taxpayer signatures by the deadline.

If you have questions, please feel free to contact our office.

Source: North Carolina Department of Revenue