Somehow you got into the part year. Be sure in your personal information section, you have only VA listed for residency. When you go through the nonresident NC state, verify the filing information in the summary section and edit as needed.
Your resident state taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident NC return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- Then prepare your resident state VA return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the lowest taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
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