UNEMPLOYMENT BENEFITS FOR NC

[CLASSY]

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

[clhunt]

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! 

[jgm6520]

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!

[CLASSY]

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?

[jgm6520]

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?

[CLASSY]

It is D400 Sch S

You can find the information about unemployment  add back at NCDOR, impact of American Rescue. NC along with other states is not conforming to federal.

[CLASSY]

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?

[DFTAXPREP]

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

[Luckybuc]

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.

[ElizabethLNC]

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.

[CLASSY]

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!!!!!!!!

[ElizabethLNC]

I sent another late yesterday after posting.  I just picked up the acknowledgement that NCDOR accepted it.  I almost fell out of my chair when everything was accepted.

[CLASSY]

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.

[ElizabethLNC · Accepted solution]

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.

[CLASSY]

Did you put it on Schedule S line 16? Another question since you do NC. For Clients that have to pay and would like to have the date of debit on 5/17/21, wonder if that could be overridden as well. When I put in that date,of course I get an error. Thanks for your help.

[ElizabethLNC]

No, I didn't put it on Sch. S, line 16.  The first one I tried that way was only available to paper file.  Then again, that was only a few days after the legislation so it was work arounds on fed and state.

I don't know what to tell you about the payment withdrawal date.  The last few drafts I filed were small amounts that were withdrawn immediately.  I haven't had anyone want to draft in May so far.  I'm just waiting for the calls on the ones that chose April 15 before the extension that want to move the draft date.  

[CLASSY]

FYI, NC has been updated for the unemployment. Thank you for your help.

[jgm6520]

I have a couple of  NC returns that I filed before NC decided what to do. I went to review them today and what-do-you-know, NC adds the exclusion back to the return and calculates the balance due from the new number. Individuals with this situation will "probably" get a notice from NCDOR about more money being due or a lower refund should be expected.