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Today is tax day!  And that means that if you haven’t filed your federal and state income taxes by today, you have a few hours to complete them or file for an extension.  In past years, the post office would stay open later for those last minute filers to receive an April 15th postmark, but that is not the case this year.  According to a local news source,

Anyone waiting until Tuesday to mail a return will have to take care of it during regular business hours. Unlike in some past years, North Carolina post offices aren’t staying open late on Tuesday. The U.S. Postal Service announced Friday that the steady switch to electronic filing means there’s no longer a need for extended hours around tax time.

According to a recent poll, nearly 25 percent of Americans wait until the deadline to file their taxes.  What happens if you forget to file by today?  You are charged a penalty, generally 5-percent of your unpaid tax bill for every month or part of a month you are late, with the maximum being 25-percent of your original tax bill.  According to the IRS, about 12 million taxpayers are expected to request extensions this year, giving them an additional six months to file their returns.  Even those filing an extension must pay at least 90-percent of their tax bill by today to avoid the failure-to-pay penalty.

This is a special year for North Carolina, as it is the last year taxpayers will file under the old tax code.  The new code went into effect January 1st of this year, and the changes will be seen next spring when residents file their tax returns for 2014.  A new flat rate personal income tax of 5.8 percent and an increased standard deduction will help the average household in every income category save money on their taxes next year.  North Carolina is a diverse state, from the large urban populations in cities like Raleigh and Charlotte, to the small rural population across the state.  There are also wide ranges in income.  Below is a table showing a breakdown of households in North Carolina by income category. 

North Carolina

Income Levels

Total Households

Families

Married-couple families

Nonfamily households

Less than $10,000

8.7%

 324,625

6.0%

 148,334

1.9%

 34,123

15.7%

 197,678

$10,000 to $14,999

6.6%

 246,267

3.8%

 93,945

1.8%

 32,327

12.6%

 158,646

$15,000 to $24,999

12.3%

 458,953

10.0%

 247,223

6.9%

 123,919

17.7%

 222,860

$25,000 to $34,999

11.8%

 440,296

10.8%

 267,001

8.9%

 159,838

14.2%

 178,791

$35,000 to $49,999

14.9%

 555,967

14.7%

 363,418

14.0%

 251,430

14.7%

 185,087

$50,000 to $74,999

18.1%

 675,370

19.6%

 484,557

21.6%

 387,921

14.1%

 177,532

$75,000 to $99,999

11.2%

 417,908

13.7%

 338,696

16.9%

 303,513

5.5%

 69,250

$100,000 to $149,999

10.0%

 373,133

13.0%

 321,390

16.8%

 301,717

3.8%

 47,846

$150,000 to $199,999

3.1%

 115,671

4.2%

 103,834

5.5%

 98,776

0.9%

 11,332

$200,000 or more

3.1%

 115,671

4.3%

 106,306

5.6%

 100,572

0.9%

 11,332

Income in the past 12 months (in 2012 Inflation-Adjusted Dollars), 2012 American Community Survey 1-Year Estimates

Last year, the 2012-13 fiscal year, the State of North Carolina collected $23.8 billion in total taxes.  That is more than just income taxes; it includes all taxes collected by the state — sales taxes, personal income taxes, alcohol taxes, motor vehicle taxes, hunting and fishing licenses, tobacco product taxes, and many more.  The total income tax collected from individuals or families filing income tax returns was more than $11 billion in 2013.

So whether you need to file and extension, have already received your refund, or are running to the post office today to mail your taxes, I hope your tax season wasn’t too stressful and we can all look forward to a lower tax bill next year.

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