On NC SCorp w/taxed PTE income, it is not flowing to Line 38 on K-1 supplemental, but it does to Line 10 of K-1. W/O Line 38, I can't get deduction. How does this flow?

[TimO]

By entering Line 10 on the K-1 of the personal return, I don't get the deduction.  I have to go back and add on Line 38, but that amount is not on the supplemental.

[DFTAXPREP]

Did you find the answer to this as I am struggling for deduction to show up on federal.  We put it in the S-corp k1 form  on line 12 S and it passes thru to show payment for NC but not being deducted from income as the benefit.  It seems like nobody at proseries understands this and been trying to look at California as they were able to do it for 2021.  But I am lost.  Anyone?

[sjrcpa]

It is a deduction to arrive at K-1 Line 1 income, which is the whole point.. If you are preparing the 1120S or 1065 enter as a state tax deduction.

If you're inputting the K-1 into the 1040 it has already been deducted

[DFTAXPREP]

Ok done that route but how do I get it to show up on the nc return as a withholding payment.  It states it should come the federal but can't put it on page 1 of the return and line 12 k1 S.  But I need it to show up so we can make sure it gets entered in on NC as a deduction.  I was able to enter into nck1 to add back into income.

[DFTAXPREP]

Has anyone figured how to show state withheld on k1 by putting as state income tax expense?  

[SL855]

Did you find an answer to this? Nearly two hours on the phone with ProSeries support and no help. On the individual side, the tax does not seem to change regardless of whether or not NC K-1 D-401S there is an amount on Line 10.

Support kept trying to get me to manually input an amount NC-PE on line 38 of the corporate return, but if you do that it also deducts it from the entity's taxable income and the entity is no longer paying the tax.

EDIT: I spoke with someone at the NC DOR. They advised that the amount from Line 10 of the NC K-1 should then be flowing through as a deduction on line 38 of the NC K-1. That is not currently happening, which means it is likely an issue with ProSeries.

[taxick]

Hello, did anyone get this figured out?  Having the same problem in TurboTax for NC S Corp.  Info does not flow through to the K-1 and if you enter manually it wants to refund the taxes paid by the S Corp.  Any help would be appreciated!!