NC H1202

Allows North Carolina taxpayers to deduct medical expenses from state income tax, limited to expenses incurred for individuals age 65 and older.

Caps the elective deduction for medical expenses at $20,000 per taxpayer per year, with married couples filing jointly limited to $20,000 combined.

Medical expense deductions are not subject to the overall limitation on itemized deductions under federal tax code section 68.

Reorganizes the deduction structure to separate charitable contributions (unlimited) from an elective deduction category that includes medical expenses and mortgage/property tax deductions (capped at $20,000).

Effective for tax years beginning on or after January 1, 2014.