NC Non-Resident Form

Forum|Forum|4 years ago
March 13, 2022
1 reply
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We are nonresidents of NC.

We sold the NC rental, and entered our NC portion of capital gains.

We then get a question that appears to ask about SS income, that is not NC.

We previously entered "0" as NC taxable for this income that is on my federal taxes.

But the question seems to be about income adjustments (please see attached screen shot of the question.

Should the entry be a "0", or is NC trying to give me credit on income that is not NC generated or taxable?

Not sure why this specific question come up. See attached.

The NC form section in the NC forms says NC deductions from GROSS INCOME. Can I take this deduction from my NC nonresident capital gains income? Or since my SS income is not from NC, would I then enter a 0? Not sure if NC is offering me a SS deduction to my NC capital gains income, even though the SS income is nonresident. See two screen shots attached.

ColeenD3

Level 15

No, if it is not taxable to NC, it is not deductible to NC. They are not going to give you credit for a deduction that has nothing to do with their state. Enter zero income for the social security benefits.

LB641Author

Level 5

@ColeenD3

Thanks.... It puzzled us because we found this entry in two places. We had already entered the NC amounts and put a zero in the areas that were Non NC. But then the entry showed up again (by itself) under NC deductions from Gross Income. Since it showed up again, by itself, we wondered if there was some credit or something different about this specific entry and amount. Any thoughts on why it alone showed up again?

Please see attached screen shot of the two areas.

@ColeenD3

ColeenD3

Level 15

It is informational only. It is not NC income. The only income that applies to NC is the capital gain. Below is how NC treats it. However, since it was never NC income to begin with, you aren't actually deducting it either.

If your social security or railroad retirement benefits were taxed on your federal return, you may take a deduction for those benefits on your North Carolina individual income tax return. You may take this deduction because this income has already been included as part of your federal adjusted gross income and North Carolina does not tax this income. This deduction will increase your refund or decrease the amount you must pay.

NC SS