DMarkM1
Expert Alumni

Get your taxes done using TurboTax

It appears in your scenario, your form W2 has all box 1 wages listed in box 16 for NC and taxes withheld showing in box 17 for NC and no other state lines.   If that is the case you can do the allocation on the form W2 (see below).  

 

First, be sure you need to allocate.  For example if you worked in NC all year and just changed resident states then all the income on that W2 would be NC source income.  You would make two lines on the page you posted.  One with part of the income as PY NC source and the other as  NR NC Sourced. 

 

 NOTE:  Wage allocation for NC is only on that page it will not show up on the next screen.  

 

In that case none of the income will transfer to the second state interview, but you will have the opportunity to add the income earned in NC while you were resident in the new state as part of the allocation interview for that state.  

 

You will then later in the interview claim a credit on that state return for taxes paid to NC on that part of your income. 

 

If you truly do need to allocate because you no longer physically worked in NC then follow the next steps.  

 

  1. In box 16 for the NC line on your form W2 put in the amount that should be allocated to NC.  
  2. Next add a state line for your second state.  
  3. Use the federal ID number with no dashes/spaces for the state ID number. 
  4. Put in the wages that should be allocated to that  state.  
  5. The total of boxes 16 should equal box 1. 
  6. There will be no taxes withheld for that state since it didn't exist before.
  7. Be sure to submit a state withholding form to your employer for your new state so that the withholding is for the proper state going forward.
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