TomD8
Level 15

State tax filing

One good thing about @SteamTrain 's suggestion is that neither state really gets cheated if you follow his procedure.

That's because - due to the out-of-state credit you can take and the fact that the two states have almost identical tax rates - the bottom line taxes you would pay to each state using his method are virtually the same as you'd pay if you could do a "back and forth" residency in TurboTax.

Your NC income is taxed the same by NC whether you file as a part-year resident or as a non-resident.

If you file in both states as a part-year resident, GA taxes the GA portion and NC taxes the NC portion.

If you file in GA as full-year resident and in NC as a non-resident, GA taxes both portions, but gives you a credit for the taxes paid to NC on the NC portion.

Without doing the math, I think it's pretty close to a wash either way.  

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.