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Do I need to manually enter my capital loss carryover to my North Carolina state tax return with turbotax

is my "capital loss carryover" considered part of the "Carryover Credit" in the North Carolina individual tax return
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3 Replies

Do I need to manually enter my capital loss carryover to my North Carolina state tax return with turbotax

Nope.  Not if you are talking about personal stock/bond/mutual fund losses carried over from 2022 that are entered in your Federal tax return  (if you have any, they do need to be entered in the Federal section).

 

The starting point for the NC tax return is the Federal AGI, and any capital loss carryovers are already applied and part of that Federal AGI value.  So you don't get to deduct that loss a second time.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
amecal
Returning Member

Do I need to manually enter my capital loss carryover to my North Carolina state tax return with turbotax

Being a part-year resident who moved to NC in July 2023, I am noticing in D-400 Sch PN line 7, column B (amounts attributable to NC), that NC does not offset my 2023 gains with the federal carryover losses from 2022.  Is it something I have to do manually or is it that NC ignores all federal carryover losses?

 

I moved from a foreign country to NC, and it is my first State return in years.  I have a federal carryover loss amount of 13,000 from 2022, my gains in 2023 were $20,000.

Federal taxable gain is $7,000 but NC taxable gain shows $20,000.

Federal loss carryover is not being applied to NC.

 

Do I need to manually enter my capital loss carryover to my North Carolina state tax return with turbotax

@amecal 

 

Well, you need to go thru the entire NC Part-Year interview again.  Yep, you'd kind of do it manually.

 

  In the NC state interview, on the pages AFTER you indicate what wages were NC income (after you moved to NC) there is a page to indicate what Interest, Dividends, and Capital Gains are considered to be NC income. That page shows the Federal values in the left column, then two columns to the right...In the first column to the rt-side of the Federal column you'd sub-allocate your NC income for each income type to just the amounts that are appropriate for the time after you moved to NC.  You'd chop down the NC amount there.   (But how to exactly allocate the losses vs the gains at that point is beyond me...there might be some subtlety to doing it properly, depending on whether your gains were mostly before, or after your move to NC.  Not sure if NC allows you to use any of those unused losses, against gains occurring after your move to NC. Normally, for a full year resident, NC just uses what the Feds allow).

 

The far-rt column (NC-Income while nonresident) should likely all be zeros for you...that column is if you had income in NC while living elsewhere, and is more appropriate for people living in a border state to NC that crossed the border daily to work at an NC job.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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