NC State Tax Return Issue - Standard Deduction vs Itemized

avinandan_nan · ‎February 01, 2026

While filing NC State Tax return, observed that it's always taking the standard deduction irrespective of whether I chose Standard or Itemized for Federal Return. This looks to be an error on Turbo Tax end. Although, I understand there are limitations on Itemized Deductions for State, but it should consider the Mortgage Interest, Property Tax etc. as part of Itemized Deduction and it's coming more than 25500. Same happened during 2024 return also which I did not realize. Is there a solution to this? I talked to one of the experts, but he could not help and asked me to wait for another week and recheck. I don't think it's going to change and there is no way to raise a ticket or something to fix this. Please help.

LeticiaF1

You will need to enter all of your itemized deductions on your federal return. TurboTax chooses the deduction that is most advantageous for each return. TurboTax also determines what is more advantageous for your NC state return. If TurboTax is also using the standard deduction, it could be that your total itemized deductions might not be enough to make a difference on your NC return.

Before you start fixing your state return, look at your federal return again. Make sure you didn't miss any deductions that could have been included. After you review your federal return, select the State Taxes tab and review the state section. Pay close attention to the information, especially if you have made changes to your federal return. There might be new sections that need to be completed.

North Carolina Standard Deduction

Troubleshooting common federal to state transfer issues