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February 11, 2022
Question

State Income and Tax calculations

  • February 11, 2022
  • 3 replies
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Turbo Tax is not showing the correct North Carolina Taxable Income and North Carolina Income Tax Already Paid. I triple checked the numbers entered from W-4 and from 1099s. Those amounts Turbo Tax is showing on the Show Details page are low.

    3 replies

    February 11, 2022

    The taxable income showing on your state tax return would start by using your federal adjusted gross income and then subtracting deductions, such as the standard deduction. So, your state taxable income would be less than your gross income. You can see how your federal taxable income is calculated by looking at your federal form 1040, where it will appear on line 15. This number would be similar to your state taxable income, but not the same.

     

    You can look at your state tax summary and your federal 1040 while working online with TurboTax.

     

    You can view your form 1040 while working in the online version of TurboTax by following these steps:

     

    While working on your return in the Federal section of TurboTax:

     

       1.  Choose the Tax Tools icon on your left menu bar

       2.  Tools

       3.  View Tax Summary

       4.  Choose the Preview my 1040 on your left menu bar

     

    To see your state tax summary, follow the same steps, but make sure you are in your state program when you start, and you will just see the state tax summary, not the actual form.

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    SteamTrain
    Employee
    February 11, 2022

    @gandknc 

     

    1)   NC income tax already paid?...those should have been entered in the Federal Section...as

    ...1a)   part of your W-2 entries (not W-4) 

    ...1b) 1099-R , or other 1099-type entries

    ...1c)  plus any quarterly estimated taxes, you paid separately to the state during the year (you do have to enter these). 

    So those should add up if you did not mistype them in the federal section. If it's too low, go back and edit any forms that you supposedly put in Stae withholding, adn see waht you actually entered  (check Stae Estimates Paid too if you made any).

    _____________________________

    2)   State income too low?  Did you get any 1099-R forms?  IF so,

    ...2a)  who from, and

    ...2b) what did you enter for the NC State Distribution amount?

     

    Anything else special?   

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
    VolvoGirl
    Employee
    February 11, 2022

    Make sure you picked the right state in the drop down box for W2 box 15 and 1099R box 15.  What kind of 1099s did you get?