How does Turbo Tax Deluxe 2023 determine the NC State taxable income?

Forum|Forum|2 years ago
March 3, 2024
2 replies
0 views

Why is my NC state taxable income a negative number?

TurboTax Online

Best answer by JohnW152

It's fine if your taxable income on line 14 of Form D-400 is negative. Rest assured that the state program is working as intended.

According to Line 14 – North Carolina Taxable Income in the North Carolina Individual Income Tax Instructions:

If North Carolina taxable income is negative, enter the amount on Line 14 and fill in the circle next to the line to indicate the amount is negative.

Form D-400 starts with your federal AGI, then includes additions to and deductions from federal AGI. Then you claim a child deduction, if eligible, and either the state standard deduction or itemized deductions to arrive at Your North Carolina taxable income.

JohnW152Answer

It's fine if your taxable income on line 14 of Form D-400 is negative. Rest assured that the state program is working as intended.

According to Line 14 – North Carolina Taxable Income in the North Carolina Individual Income Tax Instructions:

If North Carolina taxable income is negative, enter the amount on Line 14 and fill in the circle next to the line to indicate the amount is negative.

SteamTrain

Employee

IF your NC standard Deduction (or NC Itemized deduction) is greater than your Adjusted NC Gross (line 8 of the NC D-400), then NC apparently allows the tax return to show a negative number.

Some state and federal forms have you enter a zero in some lines of their forms if the number goes negative...but apparently not NC for this particular line.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*