I was filing my NC state tax form and realized my federal wages were higher than my state wages because the federal IRS recognizes the money my employer paid to cover my domestic partner is taxable. However this number is not included in my state wages number. Therefore, in filling out my state tax form I have to start with my federal AGI number, and therefore I owe taxes on money that NC doesn't even recognize as income. Is this normal or is there a way to deduct this somehow?
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I don't see any reference to a deduction from federal adjusted gross income for the imputed income to your domestic partner in the instructions for the North Carolina personal income tax return Form D-400. So, it seems it is taxable on your state return as well as the federal return. You can research the deductions on page 18 of the publication: NC income tax return instructions
Thank you. That’s odd then that my company does not take taxes already for that. That I have to pay it during tax time. Is that normal??
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