For the 2018 tax year we are eligible for a tax credit via IRC 1341 (claim of right for prior year income repayment).
For the federal return, we claim this credit on line 73d of the 1040. TurboTax handles this correctly and adds the amount to our refund.
North Carolina specifies that this credit be claimed "on the same line as S corporation payments" (https://www.ncdor.gov/taxes-forms/individual-income-tax/repayment-claim-right-income).
Following NC's guidelines, we entered the credit amount on form D-400 line 21d (S corporation). However, TurboTax does not handle this correctly as the amount is not added to the NC refund. Note that this did require right clicking on the cell and using the "override" function to enter the amount.
A workaround is to instead manually add the credit amount to form D-400 line 16 (Tax credits), which appropriately adds the amount to the NC refund. However, this is not technically the correct line on which to claim the credit and does not permit specification of what the credit is for when e-filing.
How can we force TurboTax to correctly handle the credit when appropriately claimed on NC D-400 line 21d?
Thank you,
Mike
