I am active duty and a resident of North Carolina who is stationed in CA. My spouse is a civilian working in CA who is a resident of CA and pays state taxes to CA. When filing my joint return for CA, it has me exclude my income from our joint CA state return because I'm paying taxes on my portion to NC (obviously). However, when I start to work on my NC taxes, it has me differentiate between my wife's income being Non-NC income, but then it proceeds to include her income in my total taxable income, which obviously mean's I would owe more. Am I missing something, or does North Carolina tax me on our total income even though CA state taxes were already paid on a portion of that income? I've tried searching for answers to this for over a year and can't find anything. Any help would be great.
