How do I get credit on the NC return for foreign tax withheld on dividends?

[KurtL1]

North Carolina is one of the few states with a Foreign Tax credit. You would complete Form  D-400TC 2019 Individual Income Tax Credits.

Enter tax credits in the Search Magnifying Glass in the upper right hand corner of the screen.

[thompsam]

Why does TurboTax not complete the NC Tax Credit form for me?  My foreign tax paid amount gets entered into TurboTax via a 1099-DIV I received and I get an appropriate credit on my 1040.  As such, I don’t understand why TurboTax doesn’t properly complete the NC Tax Credit form.  If the program won’t do this how can I manualy add this TC form to my NC return from within TurboTax so I can file my NC state taxes electronically..

[DaveF1006]

You will need to report this in Turbo Tax if it didn't populate from your 1099DIV.

1. Go to state and edit North Carolina
2. Navigate through your program until you reach a page that says Take a look at North Carolina credits and taxes
3. Go to other credits>other state credits
4. The page will say Other State or Country Tax Credit Say yes at the bottom
5. Then it is going to ask for a country name and then the next screen will ask for an amount.  Country name should be mnetioned as a footnote in the brokerage statement if you received one.

[thompsam]

Thank you.  One other question:  After completing the Tax Credit portion of the interview, TheTurboTax screen states

"Note: You must attach a copy of your Other State return."  
In the past when filing a paper NC return, I was told by the state to include a copy of my 1099 showing the foreign tax paid amount.  With Turbo Tax, I planned to e-file my state return.  Is there anyway to scan a copy of my 1099 showing the foreign tax paid and include that PDF with my e-file?

[ThomasM125]

No, there is no way to scan the form and attach it to your e-filed tax return.

[mspollack777]

I am trying to enter a credit for foreign taxes paid for my NC state return. The credit automatically showed up on my Federal return. I tried to add it on the screen which says “Other State or Foreign Tax Credit”. But no countries are listed only states. How do I fix this?

[mspollack777]

I am trying to enter a credit for foreign taxes paid for my NC state return. The credit automatically showed up on my Federal return. I tried to add it on the screen which says “Other State or Foreign Tax Credit”. But no countries are listed only states. How do I fix this?

I was able to select “City/country/locality outside NC”and enter the foreign taxes of $448. However, the credit that appears is only $75. Why not the entire $448?

[ThomasM125]

The credit is based on the percentage of your income that is earned in foreign countries versus your total income. For instance, if you earned 50% of your income from foreign sources and 50% domestically, then you would only be able to get a credit for 50% of your foreign Tax. That way, you are getting credit only on the portion of your US income tax that is based on the foreign income.

[neeta7241]

Getting State Credit of Taxes paid to Foreign countries based on portion of Unearned (1099) income does not seem to make sense. If we have Form 1116 showing amount X then we should get credit of same amount X in State Foreign Tax credit as well. Can somebody point me to IRS form that dictates it otherwise?