Question

As a part resident in NC on form D400 - Schedule PN line 15, a large negative number is added to reconcile Fed AGI on line 16. Do we add the same number on the NC side ?

Forum|Forum|2 years ago
October 9, 2023
2 replies
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if we dont add the same number on NC side, NC income is way higher than Fed income and the part year resident factor is higher than 1

TurboTax Online

A

Anonymous_

Employee

Not sure if @NCPERSON1 can help but it's worth a shot.

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NCPERSON1

@rajG something may not be correct.

The first column is just the income from the Federal Income tax form, so Line 16 of the NC form you reference should be equal to Line 11 of the Federal Form 1040. Yoiu should be able to trace every number in lines 1-15 back the the federal form, lines 1-10.

Since this is just a mapping of income from the federal form to the state form, I am hard pressed to understand why you would have a large negative number.

Do you know why there is such a large negative number in the 'federal column' on Line 15? What is on Line 8 of form 1040?

are you doing this in turbo tax? that mapping should occur automatically.

the right column is the income you earned while a NC resident.

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rajGAuthor

Thanks for the prompt response.
You are right. this comes from line 8 of 1040. Thats mostly NOL carryover from 2021 on the federal.
If i dont add it on corresponding column in NC, then NC income is way higher than Federal.

Im a part year resident. so shall i prorate it by number of days while i add it to line 15 on NC side ?

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rajGAuthor

I understand Fed NOL needs to be added back but we add it back at the additions to NC.
Doing it here double counts it
I believe what should be done is -

1) add a corresponding number on line 15 on the NC side ( prorated by NC residency days )
2) When adding the Fed NOL down there, add NOL on NC side ( prorated by NC residency days )