do I have to file taxes in NC as well?
Yes, you do. The normal rules for interstate taxation are -
·
you file a
non-resident return for the states where you worked but did not live, reporting
only the income earned in that state.
·
you file a
resident return for the state you live in reporting all of your income, no
matter where it was earned. You claim on your home state resident return a
credit for taxes paid to other states that you worked in. If the out of state
income was from a state without an income tax, you would have no credit.
The result of
these rules is that you will pay tax on the income, but only once, and the net
result is it will be at the tax rate in the higher tax state.
In Turbotax you
must follow this sequence:
·
Prepare your
federal return,
·
Prepare your
non-resident state return, then
·
Prepare
resident state return.
