I have many W2Gs from a casino in North Carolina (I am not a resident of North Carolina). Some of them I had the state taxes withheld and some of them I didn't. From my understanding, I should have to pay 5.25% on all of them, but TurboTax is showing a full refund on all of the state taxes I had withheld.
This is what I have filled out in TurboTax under North Carolina state return:
Income ->Edit -> Continue -> Done With Income -> Continue
This shows Wages Allocation section, which I have the following:
Payer's Name Wages Status
<Payer Name From W2> <Some value greater than $50,000> Not NC Source Income
Then after pushing continue this shows the Nonresident Income Allocations:
<Empty>, Federal Income, North Carolina Income While Nonresident
Wages, Salaries, Tips, Etc., <Same value greater than $50,000 from previous screen>, 0
Interest, <Some value>, 0
Other Income/Loss Excluding Sec 457 and Nonqualified Plans, <Total gambling wins from all states (e.g. $20,000)>, <Total gambling wins from North Carolina (e.g. $10,000)>
Then I push continue.
I had <some number greater than $100> withheld in all of my W2Gs from North Carolina but 5.25% of my total North Carolina Gambling winnings is much higher than the amount withheld. I would expect I would owe these extra North Carolina taxes, but instead it is showing a North Carolina refund of exactly the amount I had withheld in my North Carolina W2Gs to the nearest dollar.
