Why UC got from CA 1099-G got reported as an income in NC state?

[Mel_yong]

Since I have a rental property in NC state, I'll need to file both CA and NC state tax return. I noticed the UC got from California was put to NC state as an income there. Is this a bug in the Turbotax? Anyone know about the workaround for this?

[NCperson]

@Mel_yong - suggerstions:

1) go back to the 1099-G and make sure it is tagged as CA income.  are the withholdings from NC or CA? 

2) is NC set as a 'non-resident' and then a CA tax return set that you are a resident? .    

[Hal_Al]

NC requires non-residents to report all their income on form D-400.  Then it calculates a percentage, of the total,  as being NC income (on Schedule PN).  Most states do it this way.

In the NC TT interview, you will reach a screen to allocate each piece of income as NC or not NC.  Be sure you indicated the unemployment income as not NC.

[Mel_yong]

Thank you for response. I have double checked, on the screen to allocate each piece of income as NC or not NC, I have 0 for all the federal incomes. However,  on form D-400, it listed unemployment income as NC income, don't know where the problem is.

[Mel_yong]

Thank you for the tips. In the 1099-G, I have marked this as California, but I couldn't provide State ID Number for the Box 10b since the 1099-G form I received didn't include this info. Do you think this matters or not? if it matters, do you know what the California State ID Number is?

[NCperson]

@Mel_yong - it shoudn't matter to calculate the tax correctly, but it may preclude you from efiling......

[Mel_yong]

The total state tax amount is about the same comparing filing CA only with filing CA+NC. The problem is I think I shouldn't pay NC state tax because I didn't make any money from there, also the CA state tax was reduced, so CA IRS won't agree with this too.

[NCperson]

@Mel_yong - you'll need to be more specific. Focus on the NC return first,

1) did you file as a non-resident?

2) how much income was reported in NC?

3) what was the tax liability? 

please provide the line numbers off the NC tax return and the dollar amounts,  

we can circle back to CA later. 

[Mel_yong]

Thank you, see my answer inline.

1) did you file as a non-resident?

Yes

2) how much income was reported in NC?

on the form of D-400 Sch PN, line 13 was reported as about 32K for unemployment comp

3) what was the tax liability? 
1578

[NCperson]

@Mel_yong - more information reuqired / something is not correct

1) on Line 13 you state there is $32k.... but there are two columns.  the left column should have $32k and the right column should have zero, since you state that the unemployment was in CA,

2) on D-400 Sch PN the ONLY income in the RIGHT column should be the rental income as you state that is the income sourced from NC

3) the LEFT column on that same form should be ALL your income- from both CA and NC. 

4) please review Form 1099-G, what state is listed in BOX 10a - it should reflect CA....does it?

assuming that all works out correctly, then 

5) the Tax liability on form D-400 (NC) is line 19.  (but if you didn't earn any money in NC, this should be zero!)  OTherwise, that tax liabiltiy  is carried over the CA return and CA's Schedule S determines what portion of that liability is a 'double count'; CA then gives you a credit for the 'double count'. 

let me know if any of this works!!

[Mel_yong]

Thank you, I have checked below, see my answer before.

The problem is the turbo tax is having my rental income/lose recorded under CA and having UC recorded under NC, should be the opposite, not sure why this happened. When I purchased the software, I didn't purchase NC first, only have CA as a default one. After I have input all the data, I purchased the NC recently, not sure if this is the reason or not.  

1) on Line 13 you state there is $32k.... but there are two columns.  the left column should have $32k and the right column should have zero, since you state that the unemployment was in CA,

In the Turbo tax, I can see all the right column are Zero for NC, but the PDF file: D-400 has different info, the unemployment comp was listed on the right side for NC.

2) on D-400 Sch PN the ONLY income in the RIGHT column should be the rental income as you state that is the income sourced from NC

Rental lose was listed under CA for both Turbo tax and the PDF file, didn't show under NC. I noticed: under CA, there is a note: "If any of there are operated by a single member LLC for California" for the rentals. How can I change them not to be under LLC because the properties are not under LLC? 

3) the LEFT column on that same form should be ALL your income- from both CA and NC. 

The left column is correct, the right column for NC in the turbo tax is correct for UC, but not correct for the exported PDF file. 

4) please review Form 1099-G, what state is listed in BOX 10a - it should reflect CA....does it?

I have tried to have 10a as CA or leave it as blank, both have the same result.

assuming that all works out correctly, then 

5) the Tax liability on form D-400 (NC) is line 19.  (but if you didn't earn any money in NC, this should be zero!)  OTherwise, that tax liabiltiy  is carried over the CA return and CA's Schedule S determines what portion of that liability is a 'double count'; CA then gives you a credit for the 'double count'. 

see the above mentioned problem.

[NCperson]

@Mel_yong - without seeing the tax return itself, not sure what the problem may be. The fact that you added the NC return later should not matter. makes no sense to me that the PDF doesn't mateh what is on-screen. 

suggestions

1) delete the UC and rental income from turnbo tax - delete the entire form,   Then re-enter it. 

2) contact Turbo Tax directly as they will be able to look at the return and how you entered the information. 

[Mel_yong]

Thank you for the suggestions, will try it out to see.