topic NC "Taxed S Corporation" checkbox not reflected on NC Schedule S in State tax filing

NC "Taxed S Corporation" checkbox not reflected on NC Schedule S

Not Making It Easy — Mon, 16 Feb 2026 16:32:38 GMT

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.

Re: NC "Taxed S Corporation" checkbox not reflected on NC Schedule S

DaveF1006 — Mon, 16 Feb 2026 17:27:37 GMT

Before giving up, try this to see if this workaround will work in your North Carolina return.

Go to State Taxes > NC State Return.
Navigate to the Income section.
Look for Other Business Deductions from Income.
There is a box specifically labeled "Taxed Pass-Through Entity Income." * Ignore the "Learn More" warning that says "Do not enter S-Corp info here. Entering the amount here will successfully populate the deduction on your return.

Re: NC "Taxed S Corporation" checkbox not reflected on NC Schedule S

Not Making It Easy — Tue, 17 Feb 2026 14:45:00 GMT

Not intuitive, but it has the desired result. Thanks