Multi-state filing non-resident New York and North Carolina - Error related to taxable income earned in another state subject to NC tax

[inhiding]

I'm trying to complete my taxes for 2024. I am a North Carolina resident. I worked in New York in 2024 for 20 business days. My employer issued a W-2 to me with some funds paid to the state of NY. While completing the New York return in Turbotax, I allocated the number of days worked in NY and the program calculated an amount of income equivalent to 20 working days of earnings. I entered this information and the amount of taxes paid as reported on my W-2. No errors found on my NY return per turbotax. However, when attempting to complete my North Carolina return, I get an error message that states: North Carolina credit for tax paid to another state: taxable income earned in another state subject to NC tax should be entered with an amount greater than zero." The program will not allow me enter any value. It seems hardcoded to zero in the field. When populating information in Turbotax for my North Carolina return, I entered the amount of taxable income calculated by Turbotax and the amount of tax paid to New York. Turbotax is saying that I will get the entire amount of tax paid to New York refunded to me and also get a credit with North Carolina for the tax paid to New York. How do I resolve this error?

[AmyC]

To resolve this error, we need to determine what is inaccurate and correct it. You are correct that you can't get a NC tax credit when you are not paying tax.

Fact check for "Turbotax is saying that I will get the entire amount of tax paid to New York refunded to me ":

• You should not be getting a full refund on NY taxable income unless it is below the income limit for taxation.
• You entered NY income and tax - look at your NY nonresident tax return line 37 for taxable income and line 50 for tax.
• Look at your whole NY return and verify the entries match up with reality.

Fact check for "get a credit with North Carolina for the tax paid to New York."

• NC resident gets credit for income that is double taxed.
• When going through the NC return, it asked you to enter the income and tax.
• The amounts on lines 37 and 50 should have been entered, not what is on your w2.
• Verify your credit, look at Form D-400TC line 2 for NY income and line 7a for the tax paid.

To print or view  your forms:

• In desktop, switch to Forms Mode.
• For online:
  1. On the left side, select  Tax Tools
  2. Select Print center
  3. Select Print, save or preview this year's return
  4. If you have not paid, select pay now.

To resolve your error, check NY and NC forms to find where there is an incorrect entry.