Form D-407 is the North Carolina trust return form. Review closely as it should be the D-407 K-1 form. Form D-400 S is for additions and subtractions from income and D-400TC is for tax paid to another state or Country.
The D400-S is probably from US Govt interest generated in the trust. This would be a subtraction from your state total income since US Govt interest is normally not state taxable. The D400-TC adjustment is probably from foreign taxes paid on Foreign dividends received through the trust.
In TurboTax, enter the amounts from the Federal 1041 K-1 you received and these adjustments should flow through to your North Carolina return without having to make any changes. After you have logged in and are in your return in TurboTax Online:
- Go to Search at the top of the screen.
- Enter K1 in the search box.
- You will see a Jump To function that will take you to the K1 input screens.
- Then add a new K1 by selecting Estates and Trust (Form 1041)
- Answer questions then select boxes from your K1 that contain information and indicate boxes in TurboTax
- Complete all screens then select Done
Once you finish your return, review North Carolina to insure amounts transferred from Federal for D400-S and D400-TC schedules. If not, you may need to manually enter these amounts into your NC tax return. If you are not a resident of NC, then you would need to review your resident state return for these adjustments.
