...and...in thinking about it some more, and ignoring slight differences in deductions allowed by each state
......at best, if you were at an income level that was taxed at only 4% by NY as a telecommuter...it would still be a wash state tax-wise, since as an NC-resident, NC would effectively collect an extra 1.25% tax on that same NY income to bring it up to the 5.25% that NC would have taxed it at. (Actually, NC calculates the full 5.25% on all of it, but allows you a credit for the 4% you paid to NY, and you pay the remaining 1.25% amount to NC ) And you would still be stuck with the complexity of preparing and filing two state tax returns.
IF your NY telecommuter income was at higher NY progressive level, higher than 5.25%, then NC gives a credit for taxes paid to NY...but only up to the 5.25% that NC would-have charged...so you end up paying more in state taxes anyhow.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
