It just means that you are a PY (part Year) resident of NC, and that sub-amount of income from that particular W-2 is also taxable by NC.
Any income, from anywhere is taxable after you moved to NC. NY will still tax all of that W-2, but you will be able to take an NC tax credit for the taxes you had to pay to NY on that W-2 NC-PY part, since NY gets first crack at it....But, the NC credit is just for the PY-NC part.....not all of it. AND there is some mathematical handwaving for that credit since the NC credit allowed is only ""Up-to" what NC would-have charged for the same income. So if NY taxes it at 8%, and since NC only taxes at a max of ~5.25%, the credit would only be for the NC ~5.25%.
Don't know how well that works out in the end since I don't have NY software...you do have to get your NY part-year tax return filled in perfectly first ..before working on any of the NC part-year. (Well...except the full Federal part has to be correctly filled in before NY too). So Federal first, then NY-PY, then NC-PY.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
