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UNEMPLOYMENT BENEFITS FOR NC

Forum|Forum|5 years ago
March 21, 2021
17 replies
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Just wondering if we have any NC tax preparers out there and how they are adding back the unemployment.? The only place I have found is on Schedule S. However, when I enter it there, it flows to the correct place but error says I can't efile the return. So, just wondering is this because intuit hasn't updated NC or if I am doing something wrong. Any help would be appreciated. Thanks

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Best answer by ElizabethLNC

That is great for you but tell me what you did because I see no changes to the state to enter the unemployment back in. So frustrated.

As mentioned yesterday, I overrode Line 7 on D-400 to include the unemployment add back plus any amounts on Schedule S. I attached a copy of the worksheet found in the NCDOR announcement "Impact of the American Rescue Plan Act of 2021 on the 2020 North Carolina Individual Income Tax Return" in an attempt to head off problems later. I then disabled error checking when converting to transmit. I chose to send this return separately due to the disabling.

I am giving clients the choice on how I proceed. Some are waiting. Others want it finished and are willing to file an amendment depending on how the General Assembly decides. I'm keeping a running list so I'll know where to start if I need to amend later.

C

clhunt

Level 3

Alabama has never taxed Unemployment but now PS transfers the exclusion over as a negative adjustment. But it was not included so this is in error. There is no error message or flag on the Alabama return. I am mentioning this so PS will know they are not through with Alabama yet!

J

jgm6520

Level 4

I have a couple of NC returns that I haven't filed yet because of the $10,200 exclusion. When I now go to the returns, the program takes into account the reduced unemployment income and transfers that number to the state and then calculates the tax liability. In the case of returns that have already been filed the program automatically fills out 1040-X. Intuit rides again! Great job!

C

CLASSYAuthor

Level 3

Well, you must have a trick with this. I just tried again and the same thing happening. It transfers from fed the adjusted gross income from federal which is correct but NC has to add back in the exclusion from federal that it is not doing. I would think I would do the adjustment on Schedule S on other additions so it would add back the unemployment. That works but because I put it there program is telling me client can't be efiled because of that deduction on that line. Do you see any other place it should go. I still think it goes back to PS not updating NC for the add back. Does anyone in the PS community have any suggestions?

J

jgm6520

Level 4

Hi there Classy,

Where is Schedule S? I don't see it on my NC return and where is it stated that we must "add back" the unemployment forgiveness? Is there a communication from NC on this?

D

DFTAXPREP

Level 3

Was hoping todays update would fix. I have emailed ProSeries and have gotten zero response. Anyone heard from ProSeries or have suggestions.

L

Luckybuc

Level 2

Having the same problem and thought about cutting off the error checking when e filing NC and including the $10,200 on Sch S but still hoping for a fix. Wish I could be of more help.

E

ElizabethLNC

Level 3

I turned the error checking off one last week (Mar. 23). It allowed transmission but was rejected by NCDOR. I haven't had any more since then so I'm not sure if anything has changed.

I followed the NCDOR suggestion of overriding Line 7. I also attached a copy of the worksheet in the notice in an attempt to head problems off up front.

C

CLASSYAuthor

Level 3

I think I am just going to put mine on hold until PS updates. I really thought that would have been last week. I guess that's what I get for " thoughting." I already have about 30 that will have to be amended. It makes it hard on us when tax laws change in the middle of tax season. So come on Pro Series help us out. Please!!!!!!!!

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