KeshaH
Expert Alumni

State tax filing

Thank you, I was able to recreate the issue from this file. Here's how we fix it:

 

1. Go back to the wages allocation screen in the North Carolina return.

2. Keep the first line as the full-year income. This is pulling from your W-2 and is why the amount keeps reverting. Change the status column to Not NC Source Income.

3. Change the second-line Wages column to the NC source income that you calculated. Change the status to PY NC Source Income. This will not increase your overall income.

 

Now when you go to file, you should see your refund stay as a refund.

 

View solution in original post