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slay1942
Level 1

North Carolina

I am a resident in Florida but worked part-time in North Carolina and have to pay NC income tax. I received an RMD from my IRA retirement fund. When I entered the RMD in my Federal taxes the amount due for NC income tax went up. Is the RMD subject to income NC income tax? Is there somewhere I have to record in the NC state Turbo Tax income while a non-resident? It does not seem right I have to pay more NC income tax on RMD funds received from another state. Thanks.

1 Best answer

Accepted Solutions
SteamTrain
Level 15

North Carolina

It is included in total gross income for figuring the taxes NC will apply.

.......but #1, it is not included in NC income.

...........but #2, you need to ignore the NC tax until you complete fill out the Federal tax section.  Every dang scrap ! 

 

Once the Federal  is fully filled in, you will be able to go thru the NC Nonresident tax return, and then , in the NC interview, indicate what income was NC income as a non-resident....only that part-time job W-2 is NC nonresident income...and nothing else. When on the non-resident allocation pages you have to put in a number in the blanks...or an actual zero.  Most , or all blanks will be zero's.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

4 Replies
SteamTrain
Level 15

North Carolina

It is included in total gross income for figuring the taxes NC will apply.

.......but #1, it is not included in NC income.

...........but #2, you need to ignore the NC tax until you complete fill out the Federal tax section.  Every dang scrap ! 

 

Once the Federal  is fully filled in, you will be able to go thru the NC Nonresident tax return, and then , in the NC interview, indicate what income was NC income as a non-resident....only that part-time job W-2 is NC nonresident income...and nothing else. When on the non-resident allocation pages you have to put in a number in the blanks...or an actual zero.  Most , or all blanks will be zero's.

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

slay1942
Level 1

North Carolina

Thanks Steam Train- Just the info I needed.

dgbowen
New Member

North Carolina

I am trying to complete my part year NC tax return, moved here in early July, but for some reason TurboTax continues to use the full year federal income and wont let me edit it to apply the portion attributable to NC.  Every time I try to enter the calculated amount it reverts back to the full year federal amount.  On my W2 there is no place de designate what state was what so there seems to be no way to change anything on my federal to get NC to calculate correctly

SteamTrain
Level 15

North Carolina

@dgbowen 

 

See if the following helps you divide up W-2 income during the NC allocation interview for a part-year resident where part of wages were earned in another sate, and part earned while a resident of NC.  This is only done when the state section only lists the nonresident state in boxes 15,16,17 on the original W-2.   See if that works.   Don't revisit the allocation once you have set the numbers, or the allocations will reset.   IF that still doesn't work, then it's time to get a local professional to do it for 2020....2021 will be easier as the messy part-year stuff won't be confusing the situation:

 

https://ttlc.intuit.com/community/state-taxes/discussion/re-nc-wages-allocation-code/01/2045226/high...

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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