Question

North Carolina partial year: TT is deducting more than $3k of stock losses from normal income

Forum|Forum|1 year ago
February 22, 2025
1 reply
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I moved to North Carolina on July 1. After moving I earned $124k of self-employment income and also realized $57k of net stock losses.

My partial year return is showing my NC income as $124k minus $57k = only $67k

There's no way (I don't think) that North Carolina will allow me to deduct that entire stock loss, yet TT is saying the return is 100% accurate.

Should I fix this somehow? Or should I just submit it and wait for NC to tell me I owe them more?

M

MAK70

@dripstone Can you clarify how you are able to show $57,000 in stock losses? Capital losses are limited to $3,000.

D

dripstoneAuthor

Yes, while doing the federal part, I imported my info from Fidelity which showed $180k of net gains.

In first half of year, I lived in New Jersey, and realized $237k of net gains.

In second half, I lived in North Carolina and realized ($57k) of net losses.

While doing the North Carolina step-by-step return, I came to a page titled "Part-Year Resident Income Allocations" with a box for me to allocate how much of my total $180k net gains was realized in North Carolina, and I inputted negative -$57,000 in that box.

Maybe I should change that to negative $3,000 even though that's technically not the correct amount. If I do that, will it prevent me from carrying forward the other $54,000 of losses in future on my NC return?

Thanks for any insight you can give.