I am a trustee of a turst that is being terminated. I was able to complete a Form 1041 for the federal filing by using Turbotax Business. Unfortunately TT Business does not have Form D-407 to file the NC State taxes for the trust so I'm trying to do it manually.
Form 1041 stated 0 Taxable income for the federal return because all the money has now been distributed. Does it sound feasible that the NC D-407 will who Zeros on all fields? If I'm doing it right then everything is zero but this worries me. Anyone have experience with this that can point me in the right direction or confirm that I'm on the right track?
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There might not be anyone on this board who can answer your question. However, you can contact the DOR through the link below.
https://www.ncdor.gov/contact-us/customer-service
Also, you can try posting your inquiry on the Pro board, but be advised that it is actually for tax professionals.
Yes, it is feasible that the North Carolina return may be all zeroes.
These are the items that would need to be added to the Federal Income for North Carolina tax purposes.
Additions to federal taxable income.
If you have income items that are not included in federal taxable income but are taxable to North Carolina, complete Lines 1 through 5.
Line 1. Enter on Line 1 any interest received from bonds or obligations of a state or its political subdivisions other than North Carolina if not included in income.
Line 2. Enter on Line 2 any state, local, or foreign income taxes deducted on the federal return.
Line 3. Enter on Line 3 any adjustments for bonus depreciation.
Line 4. Enter on Line 4 any other required additions. Line 5. Enter the total of Lines 1, 2, 3, and 4 on
Line 5. The total additions should be apportioned between the beneficiaries and the fiduciary on Schedule B, Line 4. D
If these do not apply then the return is probably all zeroes.
You are required to file a North Carolina return since you filed a Federal return.
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