The TurboTax questions are to determine which state taxes you have to file. The majority of military live in the state where they are stationed. If you had compensation in North Carolina outside your active duty pay, select it as a state- otherwise, just select Virginia as if you lived/worked in Virginia. Your active duty pay is taxed (if at all) by your Home of Record, but if you earn other money, you may have to file a nonresident state tax return.
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