State Foreign Tax Credit - NOT Working!

[stephen_sr2]

I have 2 separate mutual funds that have BOTH paid foreign tax as a RIC (Registered Investment Company).  Federal form 1116 appears to be filled out correctly.

My state, North Carolina, also allows for a credit for foreign taxes paid, however, NONE of the information from my federal return is being carried to my state return where the tax credit is showing as ZERO. 

Is this a BUG that needs to be fixed or am I expecting too much of this software?

[Mike9241]

most sates do not allow a foreign tax credit. (I know of none)   they only allow credit for taxes paid to other states (US) to the extent the same income is taxed by both resident and nonresident states.

[stephen_sr2]

Apparently NC is one of the few states that DO allow a foreign tax credit. See:

https://www.ncdor.gov/taxes-forms/individual-income-tax/credit-income-tax-paid-another-state-or-coun...

Apparently TT is not handling this properly.

[stephen_sr2]

WOW! Doing this MANUALLY generated a NC tax credit of $239 for just this year! It appears that this software DEFECT goes back YEARS and has likely cost me THOUSANDS  of dollars in missed tax credits.

ALL of the needed information to claim this credit is contained in the Federal return. Why can't TT carry this over to the State? Why are we paying a premium price for a mediocre brain damaged product?

[MDcharlotte]

TT team, this software defect needs to be addressed.  Causing lots of NC taxpayers to unwittingly pay taxes they do not owe.   

[AmyC]

You can enter the foreign tax in North Carolina credits and taxes section. You have to select to Add Another State Credit since NC views other countries and states just the same. See Credit for Income Tax Paid To Another State or Country

@MDcharlotte 

[tarheelmes]

The calculation appears to work correctly. However, it does not allow you to enter another country name - only gives you a selection of states. If you select OTH, it tells you to send in the other state's tax return.