Moved from VA to NC end of 2021, NC resident for all of 2022, worked in VA all of 2022. Employer withheld VA tax 1/2022 - 3/2022 then changed to NC tax withholding.
1 - I completed the VA (nonresident) tax section first; selected option "Employer mistakenly withheld VA tax from income" and noted NC as state of residence. Filing result is that VA refunded all tax withheld.
2 - NC tax section; I start out owing NC taxes.... Section "Other State/Foreign Country Tax Credit" - do I need to complete this section since VA is fully refunding the withheld taxes? I did it but am concerned that I shouldn't. Questions I had while working this:
A - what amount do I use for "Income Earned in VA and Subject to NC tax? ALL income was earned in VA, so I guess I should be using 1040 line 15 TAXABLE INCOME as opposed to my line 11 AGI - Correct??
B - I then enter the tax amt paid to VA. I get the message that NC is giving me a tax credit for the amt of tax I paid to VA. My state box goes from Red/I owe them to Green/They owe me, and there is no mention of the VA refund I am getting.
************Seems to me I am double dipping!! HELP!!!**************
