@ColeenD3
It is informational only. It is not NC income. The only income that applies to NC is the capital gain.
This is what we thought. Our NC capital gains, our NC rental income, and our NC asset depreciation recapture. Those are the only figures we entered. (see attached)
Below is how NC treats it. However since it was never NC income to begin with, you aren't actually deducting it either.
This is what we understood, but unlike previous years, this new line showed up (top image) seemingly offering us a NC deduction from gross income, and the figure being my SS value. Not sure why this option was offered this year, and thus do we enter a "0", or take the deduction. As nonresidents, the SS was earned here in our home state. But it appears that NC is offering it as a deduction?
If your social security retirement benefits were taxed on your federal return, you may take a deduction for those benefits on your North Carolina individual income tax return.
Yes, the SS number shown is a taxed figure (bottom image), on our Federal tax form. Not sure what that has to do with NC, or why it shows up as a option? Do we take it, and why, or not take it, as non resident, and enter "0".
You may take this deduction, because this income has already been included as part of your federal adjusted gross income and North Carolina does not tax this income. This deduction will increase your refund or decrease the amount you must pay.
This seems to contradict the third sentence, or we may be reading it wrong. We can take the deduction, as a nonresident, when this SS number was earned in our home state? The only income we included on the NC form is our NC capital gains, our NC rental income, and our NC asset depreciation recapture. How can I take that deduction? Trying to learn and fully understand, as this has not shown up in our previous tax years.
Thank you so much for sticking with us and for your help 🙂 (please see attached.
@ColeenD3
