bswanston1993
Returning Member

Why does my North Carolina tax return say my NC taxable income is more than my fed. adjusted gross income? (I was self-employed NC resident for most 2020, I owe NC taxes)

Line 13 of my D-400 says part-year residents and nonresidents taxable percentage is 1.6292. So my return multiplies my income AFTER deductions by 1.6292 to give me my NC taxable income, which is significantly higher than my total income for 2020, and uses that number to determine the state income tax I owe.