charitable deduction carryover error in North Carolina

Best track is to Call Customer Support and get a Ticket issued to get that fixed.....they can check it out in detail, and get a diagnostic file too Sounds like it could be a big one.

What is the TurboTax phone number? (intuit.com)

As suggested, I called them. As I expected, minimal help. I think the lady said she filed a report for me; but I have no confidence she understood what I was reporting, and I doubt if anything will happen. TT is in the business of selling, not responding.  Maybe other folks will file a North Carolina D-400, and see the same thing.

@DoninGA    Its critical that this one be passed up the line for fast action (Before E-filing NC does start up). 

It has nothing to do with the transmission problems, but an actual critical calculation error for NC.

I spent late night confirming it, and this morning too testing different situations.

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1) Short story: Transferring in last year's 2020 tax file includes ALL charitable deductions form 2020 into a 2021 NC Charitable Carryover page....all $$ already used last year.  And none of those $$ are carryover amounts.

2) Longer story:  I created a 2020 Fed&NC tax file (Premier: 2020.48.50.115). Single age 55 With $100,000 W-2 & AGI.

Itemized deductions ( Fed 21,300) with 13,500 mixed Charitable donations.  Those same Charitable donations were used in the 2020 NC itemized deductions.  No carryover since the 13500 was far below the 60%,50%,30%,etc AGI limits)

3) Transferring that file to 2021 taxes  (Premier: 2021.47.17.75)  just takes those used charity donations and imports them into the Carryover column of the 2021 Deductions worksheet  (picture Below).  (not sure what happens if there was an actual carryover).

4) If an NC resident has enough 2021 deductions to itemize for 2021, then those improper carryover $$ are added in for an improper large total charitable deduction (second picture below.  Similar 100k AGI with Itemized deductions).

5) One can workaround by entering $0 for those carryover amounts in teh NC interview (both Online & Desktop)  or the form itself in desktop....but cannot just blank-out the values, or the $$ refill with the improper values.  Those who realize the $$ are all wrong may fix them...but 10's of thousands will just let it go assuming TTX knows what it's doing.

6) Other:  If the 2021 NC tax file doesn't have enough new deductions to itemize, the carryover $$ are ignored...so those folks may be safe for the moment.  IF the person used the NC Std Ded in 2020, all their 2020 Charitable donations (if entered in 2020) still transfer to the Carryover column for 2021 taxes.

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Diagnostic files if they can be used:

2020 Fed + NC: 923675

2021 Fed + NC: 923683

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@SteamTrain Will do...

Steamboat, thanks for verifying my discovery; I’m new to this, and hesitated to accuse TTx of an error.

I assume I’ve done all I can?

Yep...just hope and pray they fix it before tens-of-thousands of others screw up and don't realize they have to zero those numbers.  Those Using NC Std Ded in 2021 don't have to worry, because the improper transfer from 2020 is ignored until they put in enough New 2021 deductions to trigger the 2021 Itemized deductions (The carryover values still need to be fixed though).

Luckily, I don't plan to e-file until mid-March anyhow, even if I've already zero'd those carry-over $$.  But those in a rush may get unpleasant Audit letters from NC if it isn't fixed fast.  Not sure how long it will take the NC software crew to find the proper software code lines and fix it...and troubleshoot it all again.  I pray before 24 Feb when e-filing is supposed to start for NC.

I have done what I could: I wrote the NC Dept. of Revenue and described what we have observed, so they will be on the lookout for this error--and maybe be lenient towards TTx users who have this error crop up.  Stay tuned.

Here's a wonder: I heard back from the NC Dept. of Revenue first thing this morning! They are contacting Intuit to address the issue. This might get some action.

That's a WOW !

 I saw nothing in last year's forms that showed that there would be a carryover reported on any particular line...but maybe another form gets added when that happens, and I don't have any test files with an excess contribution in the first place.

Still, the number of folks who exceed the various 60%,50%,30% of AGI contribution levels in any one year would likely be fairly small....maybe 1000 for NC as a pure guess.   I can imagine some "item" donations exceeding the AGI limit for those cleaning out homes (due to Death or downsize), so perhaps some more for that one.

I noticed an issue when I was getting a rather large refund, when I normally have to pay a few hundred $.  It looked a little fishy, and when I looked through the PDF of the state taxes, sure enough that carryover was there for the full amount of our charitable donations in 2020.  After manually going through the State tax process in TurboTax, I could zero out the values and am now set to get a MUCH smaller return (like $45 instead of $1200)

Yeah, TTX needs to work fast to fix this one.

Those NC taxpayers who decided to mail-file already, who itemized their deductions and didn't catch the screwup to zero it out, are going to get an unpleasant surprise letter from the NCDOR.  Don't know if the NCDOR will issue refunds anyhow, and bill the taxpayers later....or just hold everything up.

@SteamTrain Tried posting a Private Message to you but your User ID does not come up.  Did you turn off messaging?

Anyway, finally got an acknowledgment from the Moderators today, 02/17,at 12:04PM that they are investigating.

They also wanted it to be known that they appreciate your support.

@DoninGA 

Yeah, I've had PM turned off forever.  Maybe I should turn it back on....eehhh, maybe.

Thanks for the follow-up as it's going to be a pretty major issued for NC folks.

Is there a way to get a notification when this issue is fixed?  Or if we go into the forms and $0 out the carryover, will we still be able to e-file correctly?

I was able to zero out my carryover charitable donations.  However, there was a TurboTax update today that I think has locked out the ability to submit NC tax forms.  I went through the whole process, paid my $ to submit the state along with my federal refund, and then when I tried to actually submit them, it said that the system is not submitting at this time (or something to that effect).  That was my experience anyway.  Maybe they have locked it out temporarily with today's update while they investigate the possible bug?

The zero'ing needs to be done at this point, but that is not the cause of being unable to file NC.

The NCDOR has already said they will not be taking in any efiles until the 24th of Feb, and after that will not process anything until the week of 28 Feb:   

See:

NCDOR Issues Update On Opening Of 2022 Tax Season | NCDOR

Ah!  Good catch.  Maybe it will be resolved by the time they are accepting submissions.

I believe they are looking at this.  I $0'd out the charitable carryover contribution and was able to efile NC on 2/18.  I got a rejection this morning and when I went back into the software it said there is an issue with the NC Charitable Carryover Contribution and I need to wait for a software update planned for 2/25.  After that I should be able to verify my return and resubmit. 

I am seeing the same thing and can confirm your observations.

I can confirm that I have had the exact same issue re the erroneous "carryover from prior year" in the charitable contribution section on NC itemized deduction worksheet.  What a pain!  I will await software update as opposed to manual fix.

Same exact thing happened to me. The error was obvious, so I put zeros in the carryforward worksheet. That worked to get the return correct, but when I efiled, it was was rejected. The reason is the charitable contribution. Based on these comments, I will wait until the 24th and try again. 

The last time I tried a paper return in NC it took over six months to get a refund. Not doing that again. 

Same exact problem here, just found it.  Thanks for the confirmation. I'll try the workaround of changing the amounts to zeroes. 

Zero'd them out and clicked confirmed block and submitted.  Seems to have at least accepted by Intuit today, but subsequent email from Intuit says, "Your hard work is about to pay off. In just 24 to 48 hours, you’ll receive an email letting you know if you’ve been accepted or rejected. (Longer for some states, if you filed a state return.) You’re now one step closer to getting your refund.  Next step: Keep an eye on your inbox. Currently your e-file status is pending. We’ll send you an email the moment we know it’s changed."

@Slayer    I don't know how fast NC will be "accepting" these.  Let us know when it happens. 

Last year it took a couple hours for mine, but this year is strange and we can't know what the NC computer acceptance situation is.

NC said they wouldn't actually process any until next week.....so they'll sit in storage until they get around to dealing with those, in what I suspect will be a HUGE backlog.