Reality Check: Tax Form Confusion
Updated: Wednesday, December 18 2013, 03:45 PM EST
Less than two weeks until the end of the year and North Carolina taxpayers face a deadline. A new withholding form that has to be filed with your employer by December 31st. It called the NC-4EZ. But many people aren't finding anything easy about it.
The reason for the form is the reduction in state income tax beginning next year and the switch to a flat-rate. But there is a price to be paid that involves a pen.
Tax advisor Jim Lowe says the form doesn't look at all like the old NC-4 version we've been filing for years. Income range, family status, withholding criteria are all jammed on one sheet.
"I think this form is a little daunting, even though it's supposed to be for the EZ," said Lowe. "I think the big downside is just the form is confusing, and it's overwhelming."
Another issue is timing. The form wasn't available until less than a month ago. December 31st is looming.
If you miss the deadline, your employer will have to list you as a single person, with zero deductions. That likely means lower take-home pay, but it's not forever.
"When you get your first paycheck, or your second paycheck in 2014 and something doesn't look right, you can always go back and adjust that," said Lowe.
In the final analysis, Lowe sees NC-4EZ as just part of a new process. A change that should improve your bottom-line.