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Level 1

Turbo tax listed franchise tax, paid to nc for s-corp, on NC k-1 line 2. If this is correct, can you explain why?

Turbo tax listed franchise tax, paid to NC for s-corp, on NC k-1 line 2 indicating it should be an addition to income when filing personal state taxes (on D-400, Schedule S; Line 6).  If this is correct, can you explain why?  When I look at the instructions for filing NC personal taxes, I don't see anywhere that franchise tax should be added in.

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Level 3

Turbo tax listed franchise tax, paid to nc for s-corp, on NC k-1 line 2. If this is correct, can you explain why?

Often the starting point for a state return is federal taxable income.  On a state return state income, or franchise taxes, are often added back (along with any other fed to state adjustments needed) to get to the correct taxable income for state income tax purposes.  I hope this is helpful.