TurboTax Schedule K1 for North Carolina for Taxed PTE still INCORRECT!

Forum|Forum|1 year ago
February 11, 2025
2 replies
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TurboTax Generates a Schedule K1 for my S-Corp in NC which is a Taxed PTE.

Aka I already pay Taxes to NC on the Business Level for my S-Corp.

But Line #2 & #38 should have data to show that I already paid Taxes on the Corporate Level.

But instead TurboTax - shows 0.

Which means when I file my Personal NC Return - I am Taxed AGAIN on my S-Corp Profits on the Personal level.

The only fix I found is to OVERRIDE the 0 that TurboTax produces on the Schedule K1

Please FIX THIS!

TurboTax Business Windows

PatriciaV

Employee

Please clarify if you reported the PTE payment on the federal Form 1120S Line 12 (state franchise/income taxes).

Further, is there an amount on Form NC K-1 Line 2?

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Trace99Author

The Problem with Schedule K1 for North Carolina (NC K-1) for Taxed PTE.

I reported that my S-Corp is a Taxed PTE.

Lets say the S-Corp earned $500,000 for 2024.

One Line #1 (NC-K1) - it says $500,000

One Line #2 (NC-K1) - It says $22,500 (The amount of taxes the S-Corp already paid in taxes to NC in 2024 (4.5% of $500,000).

The Problem is that Line #3 - Deductions from Income - Shows 0 on NC K1 (By TurboTax Business).

Also Line #38 - The amount of Income that was already taxed - Should show $500,000 - But in TurboTax Business NC K1 - shows 0.

The Result is: My S-Corp already paid NC Taxes $22,500 on the Business Level.

And when I do my Personal Taxes (TurboTax Premier) Because Line #38 is 0. I am taxed ANOTHER $22,500 on the same $500,000 S-Corp income but this time on the Personal Level.

Please Fix.

kd-

It is unacceptable that this is still a problem after being reported in 2022: https://ttlc.intuit.com/community/state-taxes/discussion/issue-with-north-carolina-taxed-pass-through-entity-income-new-for-2022/00/2964095

I believe the easiest workaround is to go into Forms mode, then go to D-400 Sch S Wks, then go to line 38a manually and copy over the amount already entered from D-403. Based on the amount due I think this works, and it's less incorrect than putting it directly in the "Other Business Deductions from Income" section directly.