TurboTax reverts part year NC source income to the full W-2 income amount for the year

[user17736538979]

TurboTax reverts part year NC source income to the full W-2 income amount for the year, over-riding PY/NR allocations entered during the NC state interview. Does anyone have a workaround within TurboTax (e.g. by going to the forms), or will I need to print and mail my forms without e-filing (which seems to trigger this quirky reversion)? Is there an explanation for why TurboTax does this? Many thanks -

[CesarJ]

This behavior can occur because TurboTax's e-file submission requires consistent income reporting that matches federal inputs, which may override manual state allocations to prevent mismatches.

Thus, mailing your return is a possible way to submit your correct part-year NC income allocations without reversion.

If you want to try again to enter part-year North Carolina income allocations in TurboTax and help maintain those allocations, follow these steps:

1. Go to the State Taxes section and select your North Carolina return.
2. Choose Edit or Review for your NC state return.
3. Find the Date of Last Move screen and enter your move-in or move-out date.
4. When asked about income allocation, answer No to "Were all your wages earned in North Carolina?".
5. On the Form W-2 Summary screen, select Edit next to each W-2 to allocate wages to NC.
6. Use one of the allocation methods TurboTax offers: 100% NC, allocate by days, allocate by percentage, or allocate over multiple years.
7. Complete all steps and confirm allocations before finishing your return.

[SteamTrain · Accepted solution]

@user17736538979 

Yeah I reported it on 6 March......not sure it is actually being worked on.

Check my extended troubleshooting "workaround", with pictures, that seems to kind-of work  (by changing the order in which the NC-PY income is listed during the NC interview), but I don't really know if it will hold all the way thru the final filing step.   It does appear to work thru the point at which the NC W-2 incoem jumped up before (right at the Audit Risk step).

Solved: Re: I am a part-year resident in NJ and NC. I have earned income (W-2) that must be allocate...

But if you don't trust it, and don't want to wait to see if TTX fixes the problem...if ever...then you might just be stuck with paper filing the state form this year.  Luckily...most folks don't move states every year.

[user17736538979]

thank you for pointing me to the other thread, which describes a quite similar scenario.  in my case spouse also has income so there are more than two lines (taxpayer PY NC Source Income, taxpayer NR NC Source Income, spouse PY NC Source Income, etc.). 

I am still grappling with it.  very frustrating to be "verified" only to have the numbers abruptly change at the last stages when I start to e-file or save...  I appreciate everyone who took the time to reply.

TT