I'm a North Carolina resident but own an S Corporation in Maryland. I always filled in Maryland Non-Resident tax return before I filled my North Carolina return through TurboTax. But this year (2024 tax), the TurboTax "Home and Business" edition will copy over my Federal K-1, created a North Carolina K-1, and forced me to enter my S-Corporation income into this North Carolina K-1 form. This K-1 has been claimed in my Maryland return, it also has a Maryland street address, and I also "imported" my 2023 TurboTax return to start this 2024 return, how could TurboTax this year became so stupid to duplicate my K-1 in every state I filed? Now, how do I remove this NC K-1 form from my North Carolina return?
As a North Carolina resident, you are required to report all income.
Thanks! But I was asking why TurboTax behaves inconsistently? I know the tax law and even have worked for NC DOR, but I was not asking NC tax law. I have filled Federal tax, and filled Maryland tax (as non-resident), the TurboTax should know that K-1 has been claimed as Maryland income and it should know my K-1 income/loss "amount" automatically in my NC tax calculation. But this year (2024 tax), the TurboTax asked me to enter the income/loss for NC K-1 "manually", and that's never happened. In fact, I finally did fill in the income/loss field in this NC K-1 form and that did NOT increase my NC tax due. Then I saved a PDF copy of all my returns, and surprisingly there is NO NC K-1 form included in my NC tax return. So this is a software defect in 2024 TurboTax and it will just confuse the users.