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nbkxmn8
New Member

My state tax "due" as calculated by TT is using full income, not the 79% ratio earned in NC. i have double checked W2 entries, all are correct. What is the problem?

 
3 Replies
xmasbaby0
Level 15

My state tax "due" as calculated by TT is using full income, not the 79% ratio earned in NC. i have double checked W2 entries, all are correct. What is the problem?

Are you leaving out some information?  Did you live/work in two different states?  Are you filing two state tax returns?  You should always prepare the non-resident state return first before you prepare the return for the state you live in, so you get credit for the tax withheld for the other state.  If this is not your issue, then you need to explain more to us.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Lisa995
Level 12

My state tax "due" as calculated by TT is using full income, not the 79% ratio earned in NC. i have double checked W2 entries, all are correct. What is the problem?

You need to look at the actual tax form and follow the money.   Some states use all income,  then adjust the actual tax by the correct % for part year or non resident returns.  So its possible to see the entire amount of income being shown on that state return, not just the % that's taxable.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
SteamTrain
Level 15

My state tax "due" as calculated by TT is using full income, not the 79% ratio earned in NC. i have double checked W2 entries, all are correct. What is the problem?

You definitely need to explain your "residency" situation further:

 

1) if you were a part-year resident of NC, then NC calculates the tax on ALL your income, then reduces the tax based on the % of income earned in the two states.  But you do have to go thru the full set of NC income allocation questions before it calculates the right numbers.    If you are not getting a decimal digit in line 13 somewhere around 0.8...then you didn't fill in the NC income allocation questions properly....or are mistaken about your ratio.

 

2)  If you were a full-year resident of NC, and worked out of state during the year...then it does calculate a tax on every scrap.....but....you get a tax credit for the taxes paid to the other state on their non-resident tax return.  IF the other state does not have an income tax, then NC taxes it all with no credit.  You do have to fill in the non-resident state tax return first.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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