MaryK4
Expert Alumni

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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