zero state tax amount in turbo tax tool

[rhallen99]

I live in NC. I'm paying my state tax online, Where in Turbo Tax do I go to "zero" state tax owed amount?

[VolvoGirl]

You don't.  Your tax return will always show the ending result, either the refund or tax due.  That was the way it was when you filed.  Unless you made an estimated payment before you filed or a payment with an extension to file.  

[NCperson]

the amount of tax you owe for NC (I am in NC as well) is line 27 "pay this amount" 

look at the 2nd page of the NC return - it's easier to read that page than the 1st page to see line 27 and it's explanation. 

[rhallen99]

Okay great and thanks for your quick reply. You mention when the state tax owed can be zero'd in the form (form#?) on line 27. Instead of making the change inside the form itself, can it be made in the application? I seem to recall doing it a few years ago but can't seem to find exactly where.

[NCperson]

not sure if I am following you, but sounds like you would prefer to pay the amount due at the State website rather than set up the payment within TT.

if that is what you are trying to do, then just leave the state return in TT as it is and DO NOT pay within the software.   The State will see you have money on account to offset what the Tax Return states.  

Alternatively, and I am using the desktop version, go under 'payments' and enter the amount and the date you are going to pay; that will zero out Line 27 of the NC return. 

[rhallen99]

I think I'm getting close to the answer. You say under "PAYMENTS". Specifically, where in the TT desktop tool are you referring to? Can the value under line 27 be changed there? I've done this a few years ago but can't remember where in the desktop tool I did it. 

I'm going through these gymnastics because I don't want to pay the state interest on amount owed by filing taxes by May 17th; although it's only a month after 4/15. I want to pay the state tax owed online at NCDOR on or before 4/15. THEN e-File both Federal and State using TT desktop by 5/17. The state that I e-file will be zero because of the amount I paid at NCDOR.

Although NC DOR extended the filing deadline to 5/17 without penalty on taxes owed, they are charging interest. Don't want to pay a penny more than what's owed. Thanks!

[NCperson]

if you are using the desktop version, switch to Forms view, and then there is a form called 'tax payments' under the Federal Section (don't look all the way down at the state section); it's 8-10 lines from the top.

That 'tax payments' form will let you enter both federal and state payments. Once you enter an amount you are going to pay the state directly, go back and look at your state tax return....Line 27 should now zero out. 

p.s. I appreciate what you are saying about the interest past April 15 (I live in NC) ... the issue is while the Dept of Revenue can change the due date, only the legislative can waive the interest from April 15.  That is what happened last year and so far no indication what the legislature is going to do. 

[Critter-3]

NO NO NO ... you cannot enter the payment of the 2020 balance due anywhere on the 2020 return.  The return will always reflect the balance due  even if you have already paid it.  That is just the way it is.  You and the state will know it is paid so the return doesn't need to reflect the payment and it never should.  

For instance, if you went to a paid tax pro and walked out with a paper copy of the return showing you had a balance due  then  later paid the balance due  the paper copy of the return would never show the payment and neither will the electronic copy of the return.  Done, end of story.   

[NCperson]

@Critter-3  I just did it and it works perfectly.  I enter a payment on the tax payment sheet with a state payment date of 4/4/21.   The amount I owe on my state tax form goes to zero.  I then go to the NCDOR website and pay what I owe there. 

[Critter-3]

FYI ... you can file now and pay later if you like.   You don't need to wait to file at all.  

There is no way to reflect the payment of the balance due on the return.  If you pay now and file later the fed/state will marry up the payment with the return  ... you do NOT do this on the return.  It is not needed and is not possible.  So if your return is ready to go then just file it now. 

If you want to pay now when filing an extension THEN AND ONLY THEN  would the return show a zero balance due because you paid with the filing of the extension  however since you don't want to DD but wish to pay online directly this is a big waste of time and effort.  

[Critter-3]

@NCperson 

I know you know better but you didn't accidentally put it on the extension payment line ?   If you did it could cause issues later.  

[NCperson]

@Critter-3 - not in NC... I see exactly what this taxpayer is trying to do and why.

The Dept of Revenue moved the tax return due date to May 17.

However, it has no authority to waive any interest and penalties if you pay what is owed after April 15.

So if you want to submit the return on May 17 and avoid any penalties and interest, then you have to pay by April 15th.  So on today I pay at the state website and on May 17th I mail in (or e-file) the tax return.    

[NCperson]

@Critter-3 - on the NC tax return the "pay this amount" is Line 27..... 

[rhallen99]

So, state tax owed is a small amount. To simplify, on desk top TT, I'll e-file by 4/15 the federal return with withdrawal date of 5/17 (I owe), and e-file state return same time with withdrawal date of 4/15. That way the state gets paid and I don't incur interest. It would be convenient if I could JUST e-file STATE only in TT by 4/15, and just wait until a time close to 5/17 to e-file the federal return.

[rhallen99]

FYI, penalty is waived but not interest....

Sec of State NC, under his statutory authority, will automatically extend the time for filing North Carolina individual income tax to May 17, 2021. With the move to May 17, the NCDOR will not charge penalties for those filing and paying their taxes after April 15, 2021, as long as they file and pay their tax on or before May 17, 2021.

Unless state law is changed, tax payments received after April 15 will be charged interest, accruing from April 15 until the date of payment. The deadline extension only applies to individual income tax returns due April 15, 2021. It does not apply to trust taxes such as sales and use or withholding taxes or estimated tax payments due April 15, 2021.