Early 401k Withdrawal abroad. Part-time NC resident.

[goshekar]

I'm a part-year resident of NC state. (resident from Jan - to Sep 2016). I moved out of NC to Canada on October 1. I did a early withdrawal of my 401k on Nov 2016. Do I still owe NC state tax?

[SweetieJean · Accepted solution]

No for that. However, you must file a NC part year resident return for any income you had while living there.

[goshekar]

Perfect, thanks for a quick response. I do have a W2 for the earnings in NC, up until Sep 2016, so that covers the resident returns.. But... do I need to provide any proof to NC for the remaining 3 months of non-residency? ( i.e do I need to prove that the early withdrawal was done only after I left NC state?)

[SteamTrain]

Hard to know that.  

Only if they ask for proof at some time in the future.  Best to get your documents together now, because sometimes it takes a year or two for them to come back at you and ask for proof.

A monthly statement from that 401k account account should suffice from October showing the $$ were still in that account after you moved, or perhaps your monthly bank statement that shows when the deposit happened....you should also keep a few gas & housing/motel receipts showing your presence in Canada during or after your move...an Apartment lease, a or home purchase documents.  Put them in a folder now with copies of your 2016 tax files after they are finally done in the next few months.