You will need to file part-year resident returns in both California and North Carolina for 2021.
As a part-year resident of California, you pay tax on:
- All worldwide income received while a California resident
- Income from California sources while you were a nonresident
As a part-year resident of North Carolina, you will use Form D-400 Schedule PN to determine the percentage of total gross income from all sources that is subject to North Carolina tax.
You will be taxed by both states for the income you earned while living in North Carolina but working for a California company; however, you will be able to take a credit on your North Carolina tax return for taxes paid to California on the income that is taxed in both states.
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