Moved to the Philippines for 3 years now. I made an early withdrawal on my 401k last year 2020. Do I have to pay North Carolina state tax? No house or property in North Carolina.

[Klix]

In my 1099-R, nc state tax was already withhold.

[DaveF1006 · Accepted solution]

It depends.  I looked up this link from NCDOR, and it states "If you were not a resident of North Carolina at any time during the tax year 2020 but you received income in 2020 from North Carolina sources that was:

(1) attributable to the ownership of any interest in real or tangible personal property in North Carolina,

(2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in North Carolina, and your total gross income from all sources both inside and outside of North Carolina equals or exceeds the amount in the Filing Requirements Chart for your filing status, you must file a 2020 North Carolina individual income tax return.

(3) My guess is that you retired from a profession while living in NC and this is why state tax is being withheld in the state of NC.

(4) You might wish to contact the pension administrator to see if you can waive paying income tax to NC.  If you can, that would completely eliminate your NC filing requirement.

[Edited 03-04-2021|11:53 AM PST]