topic 2 W2s but worked in 1 state in Get your taxes done using TurboTax

2 W2s but worked in 1 state

lachambe — Thu, 26 Jan 2023 17:07:46 GMT

I received 2 w's from my employer for 2 different states.

I worked and lived in North Carolina for the entire year.

In 2021 I became a remote worker from Michigan but my employer didn't have the system set up yet to collect the North Carolina state taxes until around June 2022. (2021 I did do 2 separate taxes since I lived in both states.)

Do I need to file 2 separate state taxes?

I attempted to input my information and file under only North Carolina, but North Carolina state tax is saying I owe a lot still, so it makes me feel that its not recognizing the taxes paid under the MI W2.

Re: 2 W2s but worked in 1 state

TomD8 — Thu, 26 Jan 2023 17:19:41 GMT

Michigan does not tax non-resident remote workers. If your employer mistakenly withheld any MI income tax from your pay, then you'll need to file a non-resident MI tax return in order to have those taxes refunded. On that return you'll show the MI withholdings, but you'll allocate zero income to MI.

As a full year resident of NC, 100% of your 2022 income is taxable by NC, regardless of its source. You will not be able to claim an other-state credit on your NC return, because in actuality you owe no taxes to MI.

Note: my answer assumes you never physically worked in MI in 2022.

Re: 2 W2s but worked in 1 state

MarilynG1 — Thu, 26 Jan 2023 17:25:37 GMT

Unfortunately you will need to file two returns, since you paid tax to your non-resident state of Michigan. Prepare this return first, then your North Carolina resident return.

Here's detailed info about How to File a Non-Resident State Return.

Re: 2 W2s but worked in 1 state

SteamTrain — Thu, 26 Jan 2023 17:51:50 GMT

...and as a side note:

...NC has just posted a notice that they won't be accepting NC tax returns until 3 Feb, when the original date allowed was today, 26 Jan....whether this means that TTX e-filing will be entirely stopped or not, is unknown...but NC won't be doing anything with them....yet...SO don't even try to e-file NC until then.

What to Expect When Filing Taxes This Year | NCDOR