You do not have to take std deduction in NC if you took std deduction on federal. Tax law changed regarding this in 2018. TT info on this being req'd is incorrect.

Forum|Forum|7 years ago
June 6, 2019
5 replies
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According to Turbotax:

Qualified Charitable Distribution Deduction

If you elected to take the income exclusion for a Qualified Charitable Distribution (QCD) from an Individual Retirement plan (IRA) and you itemized N.C. deductions, you may deduct the amount that would have been allowed as a charitable deduction on the federal return had you not elected to take the income exclusion.

Note: You must itemize deductions on the federal return in order to itemize deductions on the North Carolina return.

THE LAW WAS CHANGED IN NC IN 2018 AND YOU DO NOT HAVE TO TAKE STD DEDUCTION ON STATE RETURN IF YOU TOOK STD DEDUCTION ON FEDERAL. YOU CAN TAKE STD DEDUCTION ON FEDERAL AND ITEMIZE ON NC RETURN.

TurboTax Deluxe Windows

Best answer by SteamTrain

Like I said, my NC takes the itemized automatically, perfectly....even with Fed Std Ded.

BUT #1, you have to enter all your potential Federal itemized deductions in the Federal section first...even if you know they will not rise to exceed the Fed Std Deduction.

i.e. ALL potential deductions must first be entered in the Federal section. Property taxes, Mortgage interest (if any), all QCD values with the 1099-R's, all charity contributions (outside of the QCD)...all out-of-pocket Medical expenses have to go in the Federal section. Only then will they be used (if possible) for NC even if Fed uses Std Ded.

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IF you did an actual QCD (you were over age 70.5 in 2018)...then those $$ are not included in Federal 1040 line 4b $$.....BUT #2, the QCD will be transferred to be included in line 20 of the NC Sch S only IF your total allowed NC deductions does rise to the level of itemized deductions for NC...if they don't, then lines 15-thru-17 and 19-thru-23 will be blank.

IF you still cannot figure it out...post a list here of what $$ amounts you "Think" should be in each of lines 15-23 for the NC Sch S...then your age at the end of 2018, and you filing status, (single,married, widowed, HOH, MFS), and I'll see if I can figure it out form there, but in this PUBLIC forum it is tough to see what you are doing (right or wrong). Line 20 should be your QCD, plus all the other charity donations you entered in the Federal section.

SteamTrain

Level 15

(assuming you have the latest NC updates if using desktop software)

But your total NC itemized deductions do have to be greater than the NC Std Deduction too. Not all Fed deductions can be used (like state taxes income paid are not an NC deduction at all).
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It works OK on my test Fed & NC tax return.   I have a Fed Std Ded of 13,600 (single over 65) , and NC itemized deductions of 9528 (including 5,000 QCD) are being used, vs. the NC Std Ded of 8750

Manually Check what each $$ amount "should" be on lines  15-23 of the NC D400 Sch S to see if line 23 is above your NC Std Ded.

On my Sch S...the software  automatically added my QCD in with my Fed charity $$ for the line 20 total

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

M

MBW12345Author

Level 2

I just noticed that my Sch S shows on the top left corner "D-400 Sch S (59) 8-23-18", so this may not be the correct/latest revision. Every time I access my return, I always update the forms, ect., at the Turbotax prompt. This Turbotax generated form has the full amount of my RMD charitable contribution on Line 5, and line 20 has "$0". If my program is not updating the NC laws and forms, how can I get that in my return?

SteamTrain

Level 15

That may be OK and could be the correct latest form revision.....that is what mine says and it works OK...

Maybe you need to go back and check to see that the QCD is being properly recorded in the Federal section.

Edit that particular 1099-R to make sure you've properly indicated the QCD amount in the follow-up pages ...and it can only be done from an IRA/SEP/SIMPLE 1099-R, not from a pension, 401k, TSP, or annuity

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

M

MBW12345Author

Level 2

Thx. All of the Federal deductions seem to be OK. Since the RMD to a charitable organization cannot be deducted in Federal itemized deductions, the std deduction is better for me. However, I understand it can be entered on my NC itemized deductions. I cannot seem to get Turbotax program to let me itemize NC deductions, since I took the std deduction on federal return. How can I itemize NC deductions on Turbotax?

SteamTrainAnswer

Level 15

Like I said, my NC takes the itemized automatically, perfectly....even with Fed Std Ded.

BUT #1, you have to enter all your potential Federal itemized deductions in the Federal section first...even if you know they will not rise to exceed the Fed Std Deduction.

i.e. ALL potential deductions must first be entered in the Federal section. Property taxes, Mortgage interest (if any), all QCD values with the 1099-R's, all charity contributions (outside of the QCD)...all out-of-pocket Medical expenses have to go in the Federal section. Only then will they be used (if possible) for NC even if Fed uses Std Ded.

_________________________________

IF you did an actual QCD (you were over age 70.5 in 2018)...then those $$ are not included in Federal 1040 line 4b $$.....BUT #2, the QCD will be transferred to be included in line 20 of the NC Sch S only IF your total allowed NC deductions does rise to the level of itemized deductions for NC...if they don't, then lines 15-thru-17 and 19-thru-23 will be blank.

IF you still cannot figure it out...post a list here of what $$ amounts you "Think" should be in each of lines 15-23 for the NC Sch S...then your age at the end of 2018, and you filing status, (single,married, widowed, HOH, MFS), and I'll see if I can figure it out form there, but in this PUBLIC forum it is tough to see what you are doing (right or wrong). Line 20 should be your QCD, plus all the other charity donations you entered in the Federal section.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*