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State tax filing
You will file a Part-Year North Carolina and Part-Year Virginia tax return. You will report the $11,500 to North Carolina because you received it while you were still in NC. You will have to report the total ($54,774) as Virginia income. You will get the credit for the taxes paid to another state for the $11,500 you paid to North Carolina.
The credit for taxes paid to another state applies to your resident return when you pay tax to a nonresident state for state source income which is also reported on your resident tax return.
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March 21, 2021
11:13 AM