nc preparer help

[wendybooth]

I can not find anywhere or if we need to add back in the first 2400 of untaxable unemployment benifits. Does anyone know if we need to add those back in?

[JohnH]

I've been researching that question as well. NC uses Fed taxable income as a jumping off point, and then we are given certain add-backs for situations in which NC doesn't conform to the Fed. (The addtion to standard deduction for property taxes, for example). I can't find anything which addresses the question directly, but in the absence of specific insructions to do so, I'm not making any adjustment on the NC return for the $2,400 unemployment compensation. ATX doesn't adjust it either.

[Gail in Virginia]

I needed to know as well, so I called the NC Dept of Revenue and asked. They told me that it did not need to be added back, nor could I find anywhere in the instructions where it told me to add it back. So I am agreeing with JohnH - don't adjust for the 2400 not taxed on federal.

[JohnH]

Now I'm worried.

If NCDR gives out telephone tax advice that agrees with us, that's reason for concern.

[wendybooth]

Thank you so very much. I thought I was going crazy early in the year!!!!

[Terry D EA]

I am a NC preparer and the unemployment credit of 2400 from the Feds does not get added back in. As others have said, NC begins to calculate tax liability from the Fed income minus the std/itemized and personal exemption adjustments. The normal add back is either the difference between the Fed standard filing deduction and the NC standard deduction plus a personal exemption adjustment that depends on the number of dependents. When some one itemizes. then NC add the withholdings plus the NC exemption adjustments back in.

As for taking phone advice from the NCDOR.... that is extremly scary even if they do agree with us.

Terry D.

[taxguy057]

I am NC preparer also and i'm just amazed that you managed to get somebody from NCDOR to even answer the phone... let alone get advice! lol!

[MAMalody]

I like the bike. Can't quite tell what it is from the picture. Model/specs?