1) On the Personal Info page, they need to indicate she lived in that HOR state on 31 Dec 2016...and that she did NOT move to/from any other state during the year....For tax purposes, both of them live in their HOR state for the entire year ! (their mailing address can be NC ok....that doesn't affect anything).
2) If she didn't work in NC, then the NC tax return isn't needed at all.
3) IF she worked in NC and had no NC taxes withheld on her W-2 job (becasue she filed the proper paperwork with the employer) then no NC tax return is needed.
4) If she worked in NC, but did have NC taxes withheld, because she didn't file the proper paperwork with the employer to indicate she was claiming HOR in another state under MSRRA...the she does have to file an NC Nonresident tax return to get the withholding refunded. During the NC interview, they would indicate that both of their W-2 forms were NOT NC Source income, and all nonresident income columns would be set to zero's.
5) IF he worked in NC at a "civilian" off duty job...then that income does need to be reported on an NC nonresident tax return.
If you finally decide that no NC tax return is needed...but it's already started...here is how to delete it in the Onlien software....but make sure their individual "residency" settings are correct on the Personal Info page first.
https://ttlc.intuit.com/replies/3301384
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
