Alicia, thank you for your continued follow up. The problem with the solution listed below is that when I enter the Taxed Pass Through Entity Income on line 38 so that it appears on the NC-PE schedule, the software is deducting it from the S Corp's total income and thereby reducing the taxes due. This is not correct. I believe it should only be a deduction from the individual shareholders' NC income and not the S Corporation itself.
As you stated it does appear that the NC Schedule K is correct, and the individual can get their share of the taxed PTE from line 10 of the NC K-1 but the NC-PE and the related NC-K-1 Supplemental schedules are not showing the taxed pass through entity income. Do you think the software will be updated before the April 17 filing deadline for the NC 401S?
Thanks again for your help.
