DanielV01
Expert Alumni

Retirement tax questions

North Carolina cannot tax your pension income if you were a full-year nonresident of North Carolina.  This was established in 1996 by the Pension Source Tax Act of 1996.  Clicking on the link provides a PDF document of the actual act.  To sum it up, the Act prohibits states:   "No State may impose an income tax on any retirement income of an individual who is not a resident or domiciliary of such State."  If you are having issues with North Carolina for pension income you received while no longer a NC resident, send them a copy of proof of out-of-state residence as well as a reference to this Act.  That should take care of it.

 

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