Calculating State Tax on Amended Federal Return

[Wolf Larson]

Hello all.  In 2021 I made an excess contribution to my Roth IRA.  That was discovered and corrected in 2022. The 7K contribution was moved in kind to a non-retirement account and $534 in earnings was moved too.  I received a 1099-R this year showing $7534 distribution, with $534 being the taxable amount.  TurboTax failed to load my 2021 return correctly, but it did generate the paperwork that showed me what forms to submit, so I did the 1040-X amended return manually.  Form 5329 was used to calculate the tax on the $534 earnings, which was 10% or $53.  I did not have to pay a penalty because the excess contribution was moved prior to me filing 2022 returns.  All that is good, I believe.

However, I'm stumped on what to do now for filing an Amended NC State Return, because I have no way to simply transfer data.  I'm not even sure I need to file an amended return under this scenario.  If I do, how would the additional tax be calculated and which forms would I use?  Would I do it manually?  Thanks....

[ThomasM125]

To amend your North Carolina tax return, you need to file a corrected form D-400 with the Amended Return circle checked, and a schedule AM (Amended Return.) Since you don't have an original federal return in TurboTax to work off of, you will have to either create one or prepare the North Carolina return and schedule AM manually. Although the tax would appear to be minimal, you are required to amend the North Carolina return since you have income to report that was not reflected on your return as filed.  Here is a link to the NC Department of Revenue website with instructions on how to proceed:

NC schedule AM

Here is a link to where you can purchase the TurboTax desktop program that you may need if you decide to re-create your 2021 tax return in order to do the amended return using TurboTax: 

TurboTax Download Programs

[Wolf Larson]

Thank you!  Just completed the state forms on the NC website.  Wasn't too bad.  A lot of work to pay $30 in taxes!  I did learn a lot in the process of manually completing the Federal and State amended returns, I must say.  Thanks again.....