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Level 2
February 14, 2026
Question

NC D-400 Schedule PN Question

  • February 14, 2026
  • 2 replies
  • 57 views

In years past, TurboTax Online would correctly attribute my wife's NC business income to as Nonresident with Income from NC Sources, as we live in SC. However, this year TT is duplicating the business income as NC Source Income during NC Residence. I have confirmed that we are both marked as nonresidents of NC.

 

2 replies

RogerD1
Level 9
February 16, 2026

Were you able to allocate income items when you prepared your North Carolina return to North Carolina?  Double-check your entries, by going to Your State Returns on the left side menu, then click Edit for your NC tax return.

 

On the screen "Your 2025 North Carolina taxes are ready for us to check", click on the edit button to the right of Income.

 

On the next screen, scroll down and click Done with income.

 

The next screens will allow you to allocate income to NC - click Continue.

 

The first screen is for Wages - click Continue if things look correct there.

 

The next screens will allow you to allocate income items to North Carolina as a non-resident, including your wife's business income.

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gnc20708Author
Level 2
February 16, 2026

Thanks for the tip! I was able to resolve it earlier by deleting the state return and starting over with my non-resident state.