Military family - how do I choose my state of residence?

My husband (active duty) and I are both residents of Michigan. However, we lived in North Carolina in 2016. For personal info section, I want to select Michigan as state of residence. I am then saying I lived somewhere else in 2016 and system is asking when I moved to NC. Which is the correct state of residence?

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When asked 2. Tell us what state(s) you lived in just enter your home of record (Michigan for you). Do not select that you lived in another State unless you made money from a Civilian job in another state.

However, if you did make money from a civilian job in another state, please be sure to scroll down to the "Other state income" section under the Personal Info tab. This is where you will enter any Civilian income from other States you lived in. The program will then present a list of income types and ask you "Did either of you have any of these types of income?". Select Yes or No, as appropriate.