I was filing my NC state tax form and realized my federal wages were higher than my state wages because the federal IRS recognizes the money my employer paid to cover my domestic partner is taxable. However this number is not included in my state wages number. Therefore, in filling out my state tax form I have to start with my federal AGI number, and therefore I owe taxes on money that NC doesn't even recognize as income. Is this normal or is there a way to deduct this somehow?
