topic Re: State Tax filing for remote workers (CA & NC) in State tax filing

State Tax filing for remote workers (CA & NC)

lzuniega — Mon, 09 Mar 2026 10:19:31 GMT

I live in CA and I work remotely for a Company in North Carolina the whole year of 2021 without traveling to NC. I received 2 W2s. One with Fed and CA taxes and another one just for NC Tax. I do my own taxes ever since using TurboTax. Do I need to file a non-resident income tax for NC? Any help is much appreciated. Thanks, Luis.

Re: State Tax filing for remote workers (CA & NC)

Rick19744 — Sat, 16 Apr 2022 16:41:37 GMT

While the facts are limited, it appears that you are subject to NC tax since you derived income from a business, trade, profession, or occupation carried on in North Carolina.

This area / issue has taken the spotlight as a result of the pandemic.

So yes, you will need to file a NC nonresident tax return for the NC wages. Prepare this return first in TT.

Then prepare your CA return in TT. Since CA is your state of domicile, they will tax all of your income. However, you will then get a credit for taxes paid to NC on your CA tax return.

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Tue, 19 Apr 2022 16:12:05 GMT

@lzuniega --

"...income from a business, trade, profession, or occupation carried on in North Carolina..."

The key word is "in".

NC does not tax non-resident remote workers. Remote work carried on from a California location is carried on in California, not in NC.

If you never physically worked in NC, your work income is not taxable by NC.

However, since NC taxes were incorrectly withheld from your pay, you must file a non-resident NC return, allocating zero income to NC, in order to obtain a refund of those taxes.

Wages and salaries are "sourced" where the work is actually performed, not where the employer is located. If your work situation is still the same, you should ask your employer to cease withholding NC taxes from your pay.

Re: State Tax filing for remote workers (CA & NC)

acaral — Thu, 21 Jul 2022 14:42:29 GMT

Hello TomD8,

i have the same situation but my employer make a mistake and withheld taxes from North Carolina last year. I am working remote from Florida.

My W-2 is showing taxes withheld in NC.

How can I file a tax return in NC to get this erroneously withheld money?

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Thu, 21 Jul 2022 15:29:37 GMT

@acaral --

You must file a non-resident NC tax return on which you show the withheld NC taxes but allocate zero income to NC. This will result in NC refunding the incorrectly withheld taxes to you.

Re: State Tax filing for remote workers (CA & NC)

acaral — Fri, 22 Jul 2022 02:16:11 GMT

Hello @TomD8,

i am trying to do this on TurboTax but is not letting me.

can you guide on how to do it?

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Fri, 22 Jul 2022 13:29:50 GMT

@acaral

Add NC to your state tax returns. Then follow the instructions in this TT help topic (the instructions say NY but they should work for any non-resident state):

How to enter New York State income as a nonresident in TurboTax (intuit.com)

Re: State Tax filing for remote workers (CA & NC)

acaral — Sat, 23 Jul 2022 00:01:01 GMT

Hey @TomD8 I think I found how to do it. Now the return is showing all the taxes withhelp erroneusly by my company.

I have a last question, I could not fil emy taxes on time becuase the healthcare market had a unknown account wiht my information. I open a fraud case wiht them and it was resolve. They send me a 1095-a but is voided. How can I add this to my tax return?

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Sat, 23 Jul 2022 14:20:02 GMT

@acaral --

You don't add Form 1095-A to your tax return. The IRS already has the information from the issuer of the form. Just keep the form for your records.

Re: State Tax filing for remote workers (CA & NC)

acaral — Sat, 23 Jul 2022 23:08:48 GMT

I tried that and my return was rejected wiht this reason

Reject Code F8962-070

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Sun, 24 Jul 2022 01:05:26 GMT

@acaral --

This TurboTax help response tells you what to do to fix this:

How do I fix e-file reject F8962-070? (intuit.com)

Your return needs some information from your 1095-A, but you don't have to submit the actual 1095-A form. Sorry for any confusion.

Re: State Tax filing for remote workers (CA & NC)

acaral — Sun, 24 Jul 2022 01:19:38 GMT

I did that but there is not option for voided 1095-A. The data I entered reduced my tax return by a lot.

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Sun, 24 Jul 2022 13:33:08 GMT

@acaral --

Perhaps contact the health insurance exchange for your state to obtain a valid 1095-A?

https://www.healthinsurance.org/faqs/where-do-i-find-my-1095-tax-form/

Re: State Tax filing for remote workers (CA & NC)

acaral — Sun, 24 Jul 2022 14:03:10 GMT

i have the voided 1095. I had to file a fraud claim because someone register me for marketplace insurance. They approved my claim and issue me a void 1095.

Before, doing the fraud claim, I tried to file my taxes, in March, and it got rejected because missing the 1095 form. That is how I find out that I had a insurance with the marketplace.

Do you know if the marketplace will send the new information to the IRS or the IRS will check a marketplace database?

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Sun, 24 Jul 2022 14:08:35 GMT

See What to do if I received a voided Form 1095-A in this IRS reference:

https://www.irs.gov/affordable-care-act/corrected-incorrect-or-voided-forms-1095-a

Re: State Tax filing for remote workers (CA & NC)

acaral — Sun, 24 Jul 2022 14:15:33 GMT

Thanks @TomD8,

I read that info already.

Like it says there, because I have a void form and I have not file my tax return, I am not including that information in my tax return.

"If you have not yet filed your tax return, don't use the information on the voided or on the previously received Form 1095-A to claim a premium tax credit on Form 8962"

But, when I send my tax return, it gets rejected because missing 1095 information.

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Sun, 24 Jul 2022 14:59:47 GMT

Contact the health insurance marketplace for your state and ask for their assistance. If you have active marketplace insurance, you should receive a valid 1095-A.

Health insurance marketplaces by state | healthinsurance.org

If you have marketplace insurance, is it active? You can check here:

https://www.healthcare.gov/blog/check-health-insurance-activation/

You need a valid 1095-A in order to correct and complete your tax return.

Re: State Tax filing for remote workers (CA & NC)

acaral — Sun, 24 Jul 2022 14:58:28 GMT

I did call the marketplace and everything is good with them. They have the 1095 void on their system.

I see the void 1095 is under a slightly different name, I have 2 last names and the void 1095 is missing one, but the SSN match.

I am waiting on Monday to call the IRS but not sure if there is something i can do from TurboTax, like filling my 1095 with all "0".

Re: State Tax filing for remote workers (CA & NC)

TomD8 — Sun, 24 Jul 2022 15:06:42 GMT

I think you're stuck until you receive a complete and correct 1095-A from the marketplace. I'm not aware of any TurboTax workaround for your situation.

The marketplace issues the 1095-A, not the IRS.

https://www.irs.gov/affordable-care-act/individuals-and-families/health-insurance-marketplace-statements#:~:text=If%20you%20or%20anyone%20in,the%20Marketplace%2C%20not%20the%20IRS.

Are you sure you're enrolled in a marketplace plan?

Re: State Tax filing for remote workers (CA & NC)

acaral — Sun, 24 Jul 2022 15:24:40 GMT

I did not enrolled but it looks like someone enrolled me.

Again, I only found about this after the IRS rejected my Tax return because it was missing the 1095 form, back on March.

I did a fraud claim and they fixed it. They send me a void 1095-A. This is not suppose to be use with the taxes so I tried to file again 2 days ago after you help me with the NC issue.

Now, my return is been rejected still because the same problem.