North Carolina incorrectly calculating non-NC income?

Forum|Forum|2 years ago
March 4, 2024
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I moved to North Carolina in March 2023 and the state tax section has asked me to identify which sources of my total federal income are non-NC or NC-sourced income. I have correctly inputted my W2s and have correctly identified which sources of income are NC-sourced, however there is still a $2k discrepancy in what I can calculate as my NC-source income based on my W2s and the income that the NC state tax section has calculated as non-NC income.

DMarkM1

To help us better analyze your situation please provide more clarifying information on the $2K discrepancy. Your W2 shows what amount belongs to NC? You calculate what amount belongs to NC? What amount are you seeing that TurboTax has calculated as non-NC? What is the total wages (W2 box 1) amount? Are there other income sources besides wages being allocated?

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mrbell394Author

1) My W2 shows that $67,454 belongs to NC. I calculate the same amount.

2) Turbo Tax is calculating $14,882 to income not earned in NC.

3) Based on my calculations and according to the W2 - $17,507 should be the amount of income not earned in NC.

DMarkM1

The only place I see a non-NC entry wages/income amount is on the "Wages Allocation" page in the NC interview in the "Income" section. That number is not calculated but transfers from the W2 entries in the federal "Wages & Income" section. On the NC "Wages Allocation" page you can adjust the numbers that transferred in or change their status (not NC, resident NC, NR NC, PYR NC, etcetera).

If on the "Wages Allocation" page there are some entries "greyed out" that are incorrect, you can go back to the applicable W2 and correct the state amounts there.

Ultimately, NC does not use the amount of non-NC income in calculating NC taxes. NC starts with the total incomes entered in the federal interview and the amounts allocated to NC in the NC interview to calculate a proportion that is applied to the NC resident tax to arrive at the part-year/non-resident tax. So as long as those are correct the NC tax will be correct.

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