NC wage allocations are being overridden by W-2 Box 1. How do I prevent this?

[nwmanley]

I lived in 2 states in 2025. My W-2 does not indicate the wages by state in Boxes 15-17. I am manually updating allocations on my NC state return; however, TurboTax keeps overriding my NC allocation with the W-2 Box 1 value.

[AmyC]

Use the interview section for the program to put the numbers in the right places. Let me explain how NC calculates your tax liability using your full income and your NC part.

For example:

• NC tax on your federal income is $8,000
• But only 10% of your income was earned in NC
• NC tax liability will be 10% of $8,000 or $800.

 Let me get you to preview your return and check.

• If you are using the online version:
  1. go to Tax Tools,
  2. then select Tools,
  3. select View Tax Summary,
  4. on the left side, select Preview My NC State
• In the desktop program, switch to forms mode.

 Keep going and you will see the NC percentage come into play

1. The Federal AGI is used as a denominator and the NC only income as the numerator to calculate the percentage of income earned in NC .
2. NC determines the tax on your entire federal income, then multiplies the tax times the percentage just determined to create your actual tax.

[SteamTrain]

@AmyC   @nwmanley 

I reported this PY Allocation BUG for NC back in early March...but don't have feedback as to whether it's been fixed or not.

It seems to partially work if you put the "Not NC Source Income" first in the table, and the PY-NC Source income second...but I couldn't test if it kept thru the final filing.

IF no one bothered to fix it.....then it is a MAJOR Foul-up ON TTX's pare potentially affection thousands of part-year NC folks.

@AmyC   PLEASE Tell me it was fixed???

_________________________

Read my post clearly describing the problem here  (6 March):

Solved: Re: I am a part-year resident in NJ and NC. I have earned income (W-2) that must be allocate...

[nwmanley]

@SteamTrain my issue is exactly as you detailed.  The bug still exists.  

I was able to get around this by ensuring Wages were correct in the next screen in the "Income Allocation" section.