Update from NC DOR – 3/1/2022

NCDOR is proud to announce that our MeF system for IIT is now open for eFile.

Although we are open, please note that we are working through a significant backlog and hope to have all submissions acknowledged within the next few days.

Note: If a return gets this reject – NCD400-1160.  Rejected Submission provided in StateSubmissionIdOrig is not found in System, all you need to do is resubmit the NC return.

Update from NC DOR – 2/16/2022

NC DOR released an update to software vendors indicating they expect to begin processing returns (sending acknowledgements) the week of February 28th. As NC works to process their backlog to send acknowledgements, it is possible you may receive an accepted ack and a rejected ack for a duplicate submission. The rejected ack for a duplicate submission can be ignored if an accepted acknowledgement was also received.

Due to recently enacted legislation impacting North Carolina tax returns, North Carolina will most likely not be ready to begin accepting e-files when the IRS opens on January 24th. Software vendors, including TaxSlayer, are now actively testing their software with North Carolina for the appropriate approvals. At this time, North Carolina returns can be prepared in our software, however, when accessing the e-file menu, you will encounter an e-file block for North Carolina. This block will be removed as the appropriate approvals are received.

Update On Impact of COVID-19 Relief Provisions on NC Income Tax Returns

3/1/22 – To accurately report the NY Excluded Workers Fund (EWF) payments reported on 1099-G, Box 6, it is a two-step process.

1. Visit the “Form 1099-G Box 1” menu in the Income section and complete the 1099-G to match the hard copy. Note: This will NOT carry Box 6 amount to Federal return (this is where step 2 comes into play), but WILL carry the NY withholdings to the NY state return.
2. After adding the 1099-G, go to Less Common Income > Other Income Not Reported Elsewhere > Select “Other Income” from the drop-down. Enter the amount from the 1099-G, Box 6 again here so that it accurately carries to the 1040 as well as flowing to the NY return.

Following the above steps will allow your site to electronically file impacted NY returns.

2/21/22 – Box 6 input is now live for 1099-G. However, impacted returns should still be held as additional guidance will be coming soon on how to accurately report within TaxSlayer Pro to make sure everything is carrying where it needs to go.

For 2021, NY State Department of Labor issued 1099-G’s with an amount in Box 6 for the Excluded Workers Fund (EWF). We will be updating our current 1099-G entry page to support Box 6 entries. We expect this update to be released this week. This post will be updated after it is released.

The Georgia Department of Revenue issued the below communication to software vendors. The update is already live in the software. Note: Impacted GA returns filed prior to the update do not need to amend the return to claim the additional deduction. The GA DOR will make the appropriate corrections for the taxpayers.

Individual Income Tax $300 ($600 MFJ) Charitable Contributions with Standard Deduction

• Georgia allows the $300 ($600 MFJ) Charitable Contributions Deduction if it is allowed on their Federal 1040 or 1040-SR.

2/28/22 – Impacted MT returns can be resubmitted.

If your site has a MT return with any of the listed reject codes in the blog title, the fix is scheduled to be deployed Monday morning. At this time, please hold impacted MT returns. This post will be updated after the fix has been deployed and tested.

This post is to help clarify how to report a subtraction from North Carolina income for applicable military retirement benefits. There are two input fields located within the Subtraction from Income menu inside the North Carolina state program.

1. “Amount of taxable retirement benefits that qualify for the Bailey Settlement included on Federal return” – In short, the Bailey Settlement subtraction means that North Carolina may not tax certain retirement benefits received by retirees (or beneficiaries of retirees) of the state of North Carolina and its local governments or by United States government retirees (including military). Any military retirement income reported in this input field in the program cannot also be reported in Item 2 below. This will create a double-dip in subtraction in the calculation. Entries here carry to Line 19 of the D-400 Schedule S.
2. “Retired US Armed Forces Income” – In short, Line 20 of D-400, Schedule S, allows for a subtraction of certain retirement benefits received by a retired member of the United States Armed Forces not deducted on Line 19 (Item 1 above).

Essentially, any qualified retirement income subtracted under the Bailey Settlement on Line 19 cannot also be claimed on Line 20 of D-400, Schedule S. Also, any amount qualified to be subtracted on Line 20 for certain retired US Armed Forces income cannot have also been subtracted on Line 19.

2/18/22 – This has been corrected with this mornings deployment.

After yesterday’s deployment (roughly 6am ET), an update was introduced that is causing the NJ Property Tax Credit/Deduction not to calculate for returns that may qualify. This issue may also calculate the property tax credit/deduction for a NJ return that does not qualify. This item has already been corrected and the fix will be pushed live Friday (2/18) morning. If you have any NJ returns at your site not calculating the NJ Property Tax Credit/Deduction and you believe they should qualify (or calculating when it should not be), hold these returns until after the Friday morning deploy. If, after the deployment, the NJ Property Tax Credit/Deduction is not calculating on a potentially impacted return, please contact support with your EFIN and Last 4 of the TP SSN. We apologize for this inconvenience.

The below highlighted checkbox in E-file under “Optional Questions” should not be marked for VITA/TCE returns, even if you are preparing your own return through a VITA/TCE site. This checkbox can create validation issues for state returns because they will be looking for paid preparer information (i.e. PTIN or SSN) with the return. This checkbox should be ignored. If you filed a state return with this checkbox marked and it either validated or rejected, uncheck the box and resubmit the return.

Software vendors received the below messaging from the Ohio Department of Taxation.

“The Ohio Department of Taxation would like to communicate to taxpayers the anticipated processing times for paper returns for tax year 2021. It may take several months for your paper return to process. For faster processing, the Ohio Department of Taxation recommends you submit your return electronically using this commercial software product.”