I've read over all that before, but my wife isn't utilizing the military act and has filed taxes in California, and paid taxes on her income to California. What I'm trying to determine why is North Carolina taxing a portion of our join income that was earned in CA, by a resident of CA, and taxed by CA. It appears that NC is just double dipping into that income and taxing it again. In the past, I've filed married filing separately because of this whole issue, but I can never find a definite answer as to why they are doing this.
