Yes, you should include it as income on your federal return. (Whether the grant is included in federal gross income is determined under federal law. Generally, however, all income is taxable for federal tax purposes unless specifically exempted by federal law.)
On the federal tax return, enter as MISCELLANEOUS INCOME:
Start at Federal-- Wages and Income
To deduct it on the North Carolina state return, look for the page "Here's the income that North Carolina handles differently" select "Other Deductions From Federal Adjusted Gross Income" and enter it.
The Extra Credit Grant program was established by law in 2020 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.
Yes, you should include it as income on your federal return. (Whether the grant is included in federal gross income is determined under federal law. Generally, however, all income is taxable for federal tax purposes unless specifically exempted by federal law.)
On the federal tax return, enter as MISCELLANEOUS INCOME:
Start at Federal-- Wages and Income
To deduct it on the North Carolina state return, look for the page "Here's the income that North Carolina handles differently" select "Other Deductions From Federal Adjusted Gross Income" and enter it.
The Extra Credit Grant program was established by law in 2020 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.