Question

Taxes on a Strengthen Your Roof Grant

Forum|Forum|3 years ago
April 8, 2023
1 reply
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I live and work in Virginia but have a second vacation home in North Carolina. This second home is not a rental and only used for personal use. I installed a new roof in 2022 and received a $6000 Stengthen Your Roof grant from NCIUA. I received a 1099-MISC for this grant. Do I need to file a State of NC tax return?

M

MAK70

Yes you will need to file a North Carolina return- "Every nonresident who received income for the taxable year from North Carolina sources that was attributable to the ownership of any interest in real or tangible personal property in North Carolina." Since the grant was received because of the North Carolina property, it is NC state source income. In addition, North Carolina filing requirement is based on gross income. See Individual Income Filing Requirements.