Income received from a taxed S-Corporation in North Carolina is supposed to be deducted from your NC income (because it was already taxed).
However, in TurboTax 2025 Premier (Mac desktop edition), answering "Yes" to the question "Is the S Corporation a Taxed Corporation?" in the "K-1" section does not appear to have any effect. Also, in the "Taxed S Corporations Only" section, adding a value in box 10, "Share of Income Attributable to North Carolina" does not record that amount as it should on Line 38a of Schedule C, Part B.
Not noticing that bug would have cost me $500 in additional taxes. This is because TurboTax did not subtract income on which income tax had already been paid (by the S Corporation). As I found no way to manually edit Schedule C within TurboTax's"Forms" section, I will be preparing my NC income return on paper and mailing it in.
Just a heads-up to anyone in the same situation.
