State tax filing

Try again:

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NC Resident & Other Person's State Nonresident

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Yes...it's messy and I don't like the way the interview goes....but I can't change that. I'm going to complain to TTX as to how this is working/not working, but ai don't see much chance they will change it this year.

The Online interview works the same way as the Desktop interview..I'm showing the desktop interview in my pictures below.

I've also set this up as each spouse having half their total Federal income..just to check the multipier in the NC state software.  Yours will be different, and not likely 50-50.

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1) You Each indicate your Proper resident state in the Personal Info section....you did NOT move during 2017.

2) Put in every scrap of info in the Federal section first...don't even think of going into the state interviews until everything has been entered in the Fed section.  (OK...You can, but if you do change anything in the Federal section, you have to repeat the state section all over again.

3) First you need to go thru the full state interview again (picture 1)

4) Did you make money in NC in 2017, but never live there?.....NO

5)  What was your State of Residence in 2017 (picture 2)

..........Military TX person, select ....."xxxxx made money in NC last year, but never lived there"

..........NC civilian spouse, select......"Just North Carolina"

I KNOW !...Parts of that are not quite right...but it's the only way you can get the forms to show properly with military member as non-resident, and Civilian spouse being resident.

6)  What County (for the NC resident)

7)  Answer intervening page(s) as appropriate

😎  Next page (Picture 3) : "Here's the income that NC handles differently"...if anything applies to you on this page...deal with it..but then hit  "Done with income"  (you aren't...but that's what you do).  The "Miscellaneous" additions or deductions are unusual items you likely do not have..click the "Learn More" to see if anything applies...but I doubt it.

9)   Next page (Picture 4):  "Wages Allocation".  Mark the two spouse's W-2 according to whether it is NC income..or not.  Here is where you take out the Military NonNC-Resident's W-2 income from the Military.  IF TX Military person worked off duty on a civilian job in NC..then that W-2 is "NR-NC Source Income"

10) Instruction page...then  (Picture 5)......You indicate what sub-portion of the Federal income is NC taxable in the "North Carolina Income While Nonresident" column. What goes into the first box is a "zero"!! Since you've already indicated how your W-2 forms are to be taxed...for the next boxes, IF you share accounts with your husband, just enter half of everything.  If you have your own separate accounts, you enter whatever $$ are from your own accounts, plus half of whatever is in shared accounts.  Yes ..it is your "resident" income, but it's the only way to get these amounts properly into it as NC-taxed income.

 NOTE: The "North Carolina Income While Nonresident" is usually all zero's.....(with some execeptions if you two ran a self-employment operation, or owned a rental property located in NC).

11)  Step thru the rest of it, then print out a copy.  (Picture 6) On the NC D-400, ALL your combined MFJ income (with minor adjustments) should show up to line 10.  

NC itemized or Std Ded results in line 12, your total taxable income for everything....both of you.  

Finally, Line 13 is the decimal multiplier that reduces the total NC taxable income according to what sub-portion is really being taxed by NC.  Make sure this make sense.  In my example , I set it up as each spouse having half the family's income...so my multiplier is 0.5.

Thus, line 15 is the tax assessed on the lowered NC-income in line 14.

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Work thru it, print everything out, then go back and re-edit and adjust as needed.  Plan on spending several weeks working on it every few days.  Look at the D-400,Sch PN to see how things are being divided.

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