@kprince0712
1) If you filed the proper forms with the NC company to NOT have NC taxes withheld (The NC4-EZ), you and your military husband only have to file an AL resident tax return. AL taxes all income of their Military HOR couples, no matter where posted...thus your NC wages are taxable by AL.....and you may owe AL more than what was withheld from your Husband's military W-2. But, then, you didn't have to pay NC anything and you aren't stuck with filing two different state tax returns.
2) On the other hand, if you had NC taxes withheld, then you will have to file both an AL resident tax return, AND an NC Nonresident tax return, indicating that ALL of the NC W-2 is NOT subject to NC taxes, and get that NC withholding back.
Situation number 2 ends up requiring you to file two state tax returns.
BUT getting the form NC4-EZ submitted to the employer every year by January will stop all NC withholding.
Employee's Withholding Allowance Certificate NC-4EZ | NCDOR
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AL Legislators/Governor just signed a bill taht back-applied to their 2021 taxes.....it may take a month or more for the software to catch up to that change...you may have to wait until early April to file the AL state tax forms.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
