topic Negative income for North Carolina state taxes in Get your taxes done using TurboTax

Negative income for North Carolina state taxes

davewgns — Fri, 10 Apr 2020 05:02:10 GMT

When I do my North Carolina State Taxes (after completing federal taxes), it gives me the following numbers for income:

Federal Income: $97,357

North Carolina added this to your income: $0

North Carolina removed this from your income: -$92,525 (This is nontaxable income from my federal retirement under the Baily Bill.)

Your North Carolina taxable income: -$5,168

North Carolina income tax: $0

Income tax you already paid: -$360

Your North Carolina refund: $360

Is TurboTax calculating North Carolina taxable income incorrectly? Should I not be paying state tax on $5,168 rather than -$5,168?

Re: Negative income for North Carolina state taxes

BillM223 — Fri, 10 Apr 2020 19:17:09 GMT

Was this income on a 1099-R or on a W-2? (it should be a 1099-R but some plans pay on a W-2 so TurboTax has a different arrangement for this)

If on a 1099-R, what did you enter in box 14 for North Carolina? On the screens shortly afterwards, on the screen where you checked "Bailey settlement retirement benefits", what did you enter for North Carolina Distribution Amount and North Carolina Withholding?

I ask this because subtractions are not normally reported as negative numbers (-$92,525 ), and I am concerned that TurboTax got confused, subtracted the absolute value of the subtraction (to get $5,168) then multiplied it by -1 to get the -$5,168.

Re: Negative income for North Carolina state taxes

davewgns — Fri, 10 Apr 2020 20:28:07 GMT

This came from two 1099-R forms. One from a federal pension and one from distribution from Thrift Savings Plan. The pension 1099-R form had the appropriate number in Box 14 but the Thrift Savings Plan 1099-R had Box 14 blank. I left Box 14 blank in TurboTax.

On the page with "Baily settlement retirement benefits" I entered the full amount for the Thrift Savings Account distribution rather than 0 as shown in Box 14 of the 1099-R. (Or maybe TurboTax auto filled this?)

I suspect TurboTax is confused. I plan to redo the state tax manually rather than rely on TurboTax.