North Carolina interest expense

SkipK · ‎February 21, 2026

Our federal return has interest on form 4952. The D-400 instructions say that all interest is carried to the state return from the federal return, combined on the same line. This does not appear to be happening.

MelindaS1

North Carolina does not have a state itemizable deduction for federal investment interest expense from Schedule A. Looking at D-400 Schedule A for North Carolina itemized deductions, it appears N.C. only permits these specific line items in the itemized deductions total:

5. Home Mortgage Interest and Real Estate Property Taxes After Limitation

6. Charitable Contributions (See instructions)

7. d. Medical and Dental Expenses After Limitation

8. Repayment of Claim of Right Income

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"