As a part resident in NC on form D400 - Schedule PN line 15, a large negative number is added to reconcile Fed AGI on line 16. Do we add the same number on the NC side ?

[rajG]

if we dont add the same number on NC side, NC income is way higher than Fed income and the part year resident factor is higher than 1
 

[tagteam]

Not sure if @NCperson can help but it's worth a shot.

[NCperson]

@rajG something may not be correct. 

The first column is just the income from the Federal Income tax form, so Line 16 of the NC form you reference should be equal to Line 11 of the Federal Form 1040.  Yoiu should be able to trace every number in lines 1-15 back the the federal form, lines 1-10.

Since this is just a mapping of income from the federal form to the state form, I am hard pressed to understand why you would have a large negative number. 

Do you know why there is such a large negative number in the 'federal column' on Line 15? What is on Line 8 of form 1040? 

are you doing this in turbo tax? that mapping should occur automatically. 

the right column is the income you earned while a NC resident.  

[rajG]

Thanks for the prompt response. 
You are right. this comes from line 8 of 1040. Thats mostly NOL carryover from 2021 on the federal. 
If i dont add it on corresponding column in NC, then NC income is way higher than Federal.

Im a part year resident. so shall i prorate it by number of days while i add it to line 15 on NC side ? 

[rajG]

I understand Fed NOL needs to be added back but we add it back at the additions to NC. 
Doing it here double counts it 
I believe what should be done is - 

1) add a corresponding number on line 15 on the NC side ( prorated by NC residency days ) 
2) When adding the Fed NOL down there, add NOL on NC side ( prorated by NC residency days ) 

[NCperson]

@rajG let's add some numbers as it is easier to follow.

and just to confirm, you physically moved into or out of NC during the year - that is a 'part year resident'.  if you simply have a 2nd home in NC that does not make you a part year resident.  

let's say the NOL is $3000 on the federal side.  And let's say the NOL was $2000 prior to moving to NC and then an addional $1,000 once living in NC, then the  -$1000 would be placed in the NC column

THe NC percentage can certainly be greater that '1' if the NOL occured in the other state and not while living in NC.

from the NC instructions: 

Part-year residents and nonresidents enter the taxable percentage
as calculated on Form D-400 Schedule PN. The taxable
percentage must be entered as a decimal amount; round to
four decimal places. Note: The resulting percentage may be
greater than 100%.

[rajG]

Thanks getting closer. 
Yes i moved into NC mid year. 
What if the NOL was getting carried over from 2021 but part of it was generated from businesses in NC when i was not NC resident in 2021 ? 

[NCperson]

@rajG - I can't see that it matters.  You have a NOL in 2022 - prorating for the days you lived in NC in 2022 makes sense.

you may want to call NC DOR and discuss.  They are very easy to reach with almost never a hold time.