NC Part Year Income allocations - Social Security benefits are allocated on two screens

[ssa-1099sm]

Not sure if I'm doing this right bc it doesn't make sense to answer the same question twice.

First, there is "Part Year Resident Income Allocations". Federal income is allocated to NC as "NC Resident Income" for what is applicable to North Carolina as a Resident. This includes interest, dividends, capital gains, and "Taxable Social Security benefits." (Since I moved in the middle of the year, I allocated 50% to NC as being a NC Resident.)

Then, the very next screen is also labeled "Part Year Resident Income Allocations" but this screen ONLY has a line for "SS/RRB Benefits" and it lists the same Federal full year amount. This time, I am stating the same 50% as "NC Resident Adjustments", with the instructions of "Enter the portion of your income adjustments that were paid or incurred during 2025 as a result of your income reported in North Carolina."

What is the difference between these two allocations? Am I correct to use the same 1/2 year value on both screens?

This is a nuance that I can't understand. Thanks.

[MaryK4 · Accepted solution]

Yes your entry is correct.  While the first screen determined the North Carolina portion of taxable Social Security benefits, North Carolina law allows you to deduct that taxable portion on your state return.  You are basically reporting the income on the first screen, then exempting it from tax on the second.