North Carolina 2011: Interest Income from U.S. Territories
North Carolina taxpayers who had interest income from a U.S. territory may be eligible to avoid paying North Carolina state tax on that income in certain circumstances.
Certain customers, who received interest income from a U.S. possession and had a corresponding state deduction, may have filed an incorrect North Carolina tax return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following are true:
- You filed a 2011 North Carolina Income Tax Return prior to March 22, 2012 AND
- Your federal return included tax exempt interest ( Form 1099-Int, box 8) related to one of the following U.S. possessions/territories: AS (American Samoa), FM (Federated States of Micronesia), GU (Guam), MH (Marshall Islands), MP (Mariana Islands), PR (Puerto Rico), PW (Palau), VI (Virgin Islands) AND
- This Box 8 amount was EQUAL to the amount on your North Carolina Form D-400, Page 2, Line 43
If you are affected, you may have underpaid your North Carolina state tax. You will need to amend your North Carolina state tax return.
You can make the corrections yourself.
- To do it yourself, please follow these step-by-step instructions.
- After you make the changes to your tax return, you will need to mail a copy of your amended state return.
- Your printed return will include instructions on how and where to mail it.
- If you need assistance, call us at the phone number in the email.
Or let us do the work for you.
- Please download and print thisAuthorization Form.
- Complete the form and fax it to us at the number printed at the top of the form.
- A TurboTax representative will contact you (within 15 days) when your corrected return is ready to be securely emailed back to you.
- You can print, sign, and mail the corrected return to the state taxing authority.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the North Carolina 2011: Foreign Interest.
