NC State Tax

[Terry D EA]

Be aware that if you are processing returns for NC, the NC State Income Tax, page 2 Form D-400 line 14 is calculating incorrectly. The program is rounding up instead of down. Example: client NC Taxable Income = 11672. According to the tax percentages and filing status, multiply this amount by 6%. Doing so returns 700.32. TRX says 701.00. I know this is not significant but it DOES matter. TRX support said they would leave a note for the developers, but at this point nothing can be done. I am personally going to calculate every return until I know it is fixed. One support guy suggested the only way to change it was to complete the return by hand without the software. GREAT!!!! Why the hell did I buy the software???????

TRX- FIX THIS PROBLEM ---- Programmers should be able to correct the formula

[RGFan]

Hi Terry,

Very good thoughts here, and I can understand the frustration. We are not the support group you contacted, but I purposely have followed this forum because I can get this info directly to the programmers that need to see it. Stay tuned until I can get a response from them on this, and thank you for taking the time to express yourself on this forum. I want this to be a good experience for you as a RedGear employee, so I will see what I can do.

Thanks,

Ryan

[Don in Upstate NY]

Be aware that if you are processing returns for NC, the NC State Income Tax, page 2 Form D-400 line 14 is calculating incorrectly. The program is rounding up instead of down. Example: client NC Taxable Income = 11672. According to the tax percentages and filing status, multiply this amount by 6%. Doing so returns 700.32. TRX says 701.00. I know this is not significant but it DOES matter.

In your example, TRX is correct. The instructions for the D-400 say to use the tax tables on pages 21 thru 28 if your NC Taxable Income is under $68K, and the rate rate schedule (page 29) only if your NCTI is over $68K. The tables show a tax of $701.

[Terry D EA]

Thanks Don, I will look into that. I did pull the tax rate schedule from NC DOR which gives the percentage method. It does say to use the tax tables for income under 68,000. So, there may not be anything to worry about here. Thanks for bringing this to my attention.

Ryan from Red Gear, if you are looking into this, the program appears to be correct based on the NC instructions. Thanks for your desire to help

[RGFan]

Thank you. I was able to get the following from our NC programmer, which confirms what has already been mentioned:

NC 1040 instruction booklet, Page 29.

2010 Tax Rate Schedule (which is where they are getting the 6% tax rate)

Caution: Use ONLY if your taxable income (Form D-400, Line 13) is $68,000 or more. If less, use the North Carolina Tax Table beginning on Page 21.

The example given below was for a taxable income of $11,672 which is well below the $68,000 level. If you look on Page 22 of the attached NC 1040 instruction booklet, the Tax Table amount for $11,672 is $701.

Ryan