Where should i need to report the NC Extra Credit Grant in my 2020 income taxes ? On the state taxes says that i need to reduce this if i already reported on federal

[LenaH]

In calculating North Carolina taxable income, you would deduct the amount of the Extra Grant Credit in your North Carolina return under Other Deductions From Federal Gross Income.

Please follow these steps to get to this screen in TurboTax:

1. Open your return.
2. Click on State on the left hand side.
3. Click on Edit next to your North Carolina return.
4. Continue through the screens until you reach the page titled Here's the income that North Carolina handles differently.
5. Scroll down to Other Deductions From Federal Gross Income under Miscellaneous.
6. Enter your Extra Credit Grant on the last line for Other Deductions From Federal Adjusted Gross Income.

[SLTikes]

TurboTax states the following:  "You may deduct the Extra Credit Grant payment you received if this payment was reported as income on your federal return. "  This didn't come up during my preparation of Federal Return. Do I need to go back to the Federal return and report this as income?

[AmyC]

Yes, grants are usually taxable income and should be included in federal income.

You can enter it as other income. Follow these steps:

1. Log into your return
2. Federal
3. Click on Income
4. Scroll to the bottom section, Less Common Income
5. Select Miscellaneous income, 1099-A, 1099-C, start
6. Select Other Income
7. Did you receive other wages? Yes
8. Continue
9. Household employee? Continue
10. Sick or disability pay? Continue
11. Any other earned income or wages? Yes
12. Enter source of Other Earned Income
13. Select Other
14. Continue
15. Enter description NC Extra Credit Grant
16. Enter amount