Married and filing jointly. We claim our two children as dependents on our federal return, but when I look at my NC state tax return, it lists 0 under dependents. Anyone know if there's a reason for this or if it's a glitch in TurboTax?
There is no personal exemption in North Carolina for filers, spouses or dependents.
Thanks, SweetieJean, so the second chart seems to say that I should be able to take a deduction for each child. I have them entered in my federal tax return information, but it's not transferring them over to my NC state tax return.
North Carolina does not have personal exemptions as tax champ @SweetieJean said. The chart she sent was for the child deduction. This number is line 10 of Form D-400.
Check your form against the chart provided by @SweetieJean.
Understood, but the child dependent is showing up as zero and not applying the dependent exemption per the table that was shared. I am having the same issue for 2023 and went back to 2022 and noticed the same there.
Please provide more 2023 information so we can analyze this:
Married filing jointly
qualifying child=1
If you're receiving a child tax credit on your federal return, you should be receiving the child tax deduction on your North Carolina return.
It's possible that you're receiving this benefit, but aren't recognizing it in TurboTax. Check out both your federal and state tax summaries. To do this in TurboTax Online:
Now, look at your North Carolina summary:
You can also verify these amounts using the Forms mode in TurboTax Desktop.
Using your method, the difference is zero. There should be a difference of $1000, but it is not applying the child deduction.
It appears as though you have one qualifying child that is 17 years old or older. The $500 is the Other Dependent Credit. After a child turns 17 they no longer qualify for the Child Tax Credit, instead they get the Other Dependent Credit.
For North Carolina, you earn too much to claim a Child Tax Credit. The income limit for Married Filing Jointly is $100,000