charitable deduction carryover error in North Carolina

[DougieLeMon]

I was able to zero out my carryover charitable donations.  However, there was a TurboTax update today that I think has locked out the ability to submit NC tax forms.  I went through the whole process, paid my $ to submit the state along with my federal refund, and then when I tried to actually submit them, it said that the system is not submitting at this time (or something to that effect).  That was my experience anyway.  Maybe they have locked it out temporarily with today's update while they investigate the possible bug?

[SteamTrain]

The zero'ing needs to be done at this point, but that is not the cause of being unable to file NC.

The NCDOR has already said they will not be taking in any efiles until the 24th of Feb, and after that will not process anything until the week of 28 Feb:   

See:

NCDOR Issues Update On Opening Of 2022 Tax Season | NCDOR

[DougieLeMon]

Ah!  Good catch.  Maybe it will be resolved by the time they are accepting submissions.

[clscott401]

I believe they are looking at this.  I $0'd out the charitable carryover contribution and was able to efile NC on 2/18.  I got a rejection this morning and when I went back into the software it said there is an issue with the NC Charitable Carryover Contribution and I need to wait for a software update planned for 2/25.  After that I should be able to verify my return and resubmit. 

[Jeff in NC]

I am seeing the same thing and can confirm your observations.

[Darla66]

I can confirm that I have had the exact same issue re the erroneous "carryover from prior year" in the charitable contribution section on NC itemized deduction worksheet.  What a pain!  I will await software update as opposed to manual fix.

[CS09]

Same exact thing happened to me. The error was obvious, so I put zeros in the carryforward worksheet. That worked to get the return correct, but when I efiled, it was was rejected. The reason is the charitable contribution. Based on these comments, I will wait until the 24th and try again. 

The last time I tried a paper return in NC it took over six months to get a refund. Not doing that again. 

[Gwaihir]

Same exact problem here, just found it.  Thanks for the confirmation. I'll try the workaround of changing the amounts to zeroes. 

[Slayer]

Zero'd them out and clicked confirmed block and submitted.  Seems to have at least accepted by Intuit today, but subsequent email from Intuit says, "Your hard work is about to pay off. In just 24 to 48 hours, you’ll receive an email letting you know if you’ve been accepted or rejected. (Longer for some states, if you filed a state return.) You’re now one step closer to getting your refund.  Next step: Keep an eye on your inbox. Currently your e-file status is pending. We’ll send you an email the moment we know it’s changed."

[SteamTrain]

@Slayer    I don't know how fast NC will be "accepting" these.  Let us know when it happens. 

Last year it took a couple hours for mine, but this year is strange and we can't know what the NC computer acceptance situation is.

NC said they wouldn't actually process any until next week.....so they'll sit in storage until they get around to dealing with those, in what I suspect will be a HUGE backlog.

[billnorthraleigh]

This is what I saw today from the screen in TurboTax where it asks to fix the rejected NC return:

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Description of error:
There is an issue in the North Carolina Charitable Contributions in the state tax return.

What needs to be done:
There is an issue with this topic in the product. This product update will be available on and after February 25, 2022. Please update your software on or after 02/25/2022 (for web products this will happen automatically) and follow the steps below before re-transmitting. 1. Go to your tax return and navigate to your state return. 2. Answer all questions as before until the screen "Charitable Contribution carryovers from prior Years" - If you don't see this screen and reach review, go to step 6. 3. On this screen "Charitable Contribution carryovers from prior years", review all the amounts. 4. Click the `Learn More' link under the `IMPORTANT' section to assist you in updating these amounts if necessary. 5. Check the box at the bottom of the screen to confirm the contribution amounts are correct. 6. Follow the screens and re-submit this return electronically. For ProSeries customers: On the North Carolina return please go to the `North Carolina Standard/Itemized Deduction worksheet', scroll down to the `Charitable Contributions Smart Worksheet' . Review all the amounts for accuracy and correctness. Check the box at the bottom of the smart worksheet to confirm the contribution amounts are correct. Re-submit this return electronically. You may also print it and mail it to the appropriate taxing authority via U.S. Mail. We apologize for any inconvenience this may have caused.

[SteamTrain]

They seemed to have issued the update last night, and it appeared to have mostly work for me the way they described, but maybe they are going to do another tonight, so will check again tomorrow morning.

______________________

1) For those that had an existing NC tax formset, the vast majority of them will still need to zero-out any carryover $$ showing.

2)  For those who never even started the NC tax forms yet, the carryover sheet comes in with zero's on it now.

or

3)  For those who are uncomfortable with all that...they can completely delete the NC tax return formset, then re-start NC from scratch, and the correct amounts transfer in (i.e. zeros for 999-out-of-1000 folks).  BUT, don't attempt to delete the NC forms if  you've already paid for filing them...or filed and rejected, since I'm not sure what happens to your billing in that situation.

4) But in any case, you will have a checkbox to check to confirm you looked at it and confirm the values are now correct...after you viewed them, and if necessary, "fixed" them in one way or another.

[Slayer]

It transmitted today...we'll see if it is accepted by N. Carolina...waiting...

[phappel2]

I see this error when verifying return as TurboTax asked me to check the box that I verify this # is correct.  I could not figure out how this number exactly as my last year charitable contributions got there or where it came from.  Thanks to this thread I feel this is an error.  I got the TurboTax update yesterday evening (Feb 25th) but it didn't actually change the values...   Is the "fix" just this odd "check this box" question?   Many would just check it and move on.  It seems the program should fix the calculation and entry.   Or.... did the software fix not go out yet?

[SteamTrain]

@phappel2 

You Probably need to go in and zero-out those carryover $$ before you confirm that they are correct.

Perhaps 1 person in a thousand in NC actually have non-zero values in there.  There "Should" only be true carryover values in there, if you contributed more than 60% of your AGI in cash to a charity last year, or over 50% of yoru AGI in "items" or over 30% of AGI in appreciated stock/mutual funds.  And that is pretty rare.

This was a bug in the early software...where if you started in with the NC forms before 24 Feb, there were improper values carried over into the NC Charity Carryover form. 

The 24 Feb "FIX" did not remove those improper carried $$ for already existing NC forms....only fixed it fully for people who started their NC forms AFTER 24 Feb.

________________________

Those who had not already attempted to file, or had not already paid for the NC formset could just delete the NC formset, then restart the NC forms from scratch, and the proper zeros would transfer, but you still need to check the box to confirm/verify that they are zero's.