If the 2024 NC non resident tax rate is 4.5%, why is Turbo Tax calculating NC due $1,032 on $15,572? Shouldn't it be $700.74 which is under the $1K limit for penalties?

@mrkesley 

 

The only thing I would suggest...is that you run thru all the NC interview questions again, and make sure you didn't assign some of your other various income items as being NC-Taxable income.

 

An error like that is usually due to how you allocated your NC-income during the NC interview.

 

I completed a mock return and my numbers are not reflecting the calculations you are describing. 

 

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

 

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

 

@mrkesley 

 

I ran through the questions again more than once and everything looked correct but the tax due didn't change. I looked at the summary and it was counting my main income which was not earned in the state and then adding penalties. I deleted the state return and started over. The new version actually calculated less than what I expected with no penalties. Thanks for pointing me to the tools!