You will reduce your North Carolina taxes by taking a credit from Virginia.
Taxes are withheld in any State that you either lived or worked in.
- You lived and worked in Virginia for a portion of the year.
- In addition you worked in Virginia for an additional time.
- I would expect that the income in Virginia will match box 1.
- You then lived in North Carolina for a portion of the year.
- Only that portion of the income (for the time you lived there) should be attributed to North Carolina.
- The combined State total will be more than your Federal income.
- You will take a credit in North Carolina because you did not earn any income on that W-2 in North Carolina.
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