North Carolina interest expense

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Our federal return has interest on form 4952. The D-400 instructions say that all interest is carried to the state return from the federal return, combined on the same line. This does not appear to be happening.

MelindaS1

Alumni - Intuit

North Carolina does not have a state itemizable deduction for federal investment interest expense from Schedule A. Looking at D-400 Schedule A for North Carolina itemized deductions, it appears N.C. only permits these specific line items in the itemized deductions total:

5. Home Mortgage Interest and Real Estate Property Taxes After Limitation

6. Charitable Contributions (See instructions)

7. d. Medical and Dental Expenses After Limitation

8. Repayment of Claim of Right Income

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