I am interested in the answer to your second question. I moved to NC in April of this year. My employer is not in NC (not NC Source Income), but NC taxes were withheld. 

When I answer the question on wages allocation, it states to select "Not NC Source Income" if it was earned while not a resident AND/OR was not from an NC Source. I was a resident, but it was not from an NC source, and the "OR" indicates I should choose "Not NC Source Income". If I choose that, TurboTax says I should get all those taxes back. 

No...NC sourced income refers to income you earned while living in NC......interest, dividends, capital gains, salaries as long as you were physically present in NC at the time.  As such, that job that withheld NC taxes was NC-Sourced (if you were physically located in NC when you performed that job).  Where the employer's main office is immaterial.  (Just because you work for Amazon in Raleigh, doesn't mean that the income is WA state income).

For you, Not NC sourced income is any income you received before you lived in NC, as long as you didn't physically work in NC yourself before your move, (that second part can happen for people living just across the border from NC)

Thank you, SteamTrain!! The TurboTax guiding verbiage is very misleading. But I knew it would be too good to be true, so your explanation makes perfect sense.