topic If I am Part-Year Resident of NC and reported federal Income how do I know what to report for NC Allocations ? in State tax filing

If I am Part-Year Resident of NC and reported federal Income how do I know what to report for NC Allocations ?

Kat215 — Thu, 04 Mar 2021 15:41:30 GMT

the boxes to fill are NC resident income and NC income while Nonresident. My federal income boxes were, interest, Dividends, Capital gain,

Re: If I am Part-Year Resident of NC and reported federal Income how do I know what to report for...

ErnieS0 — Thu, 04 Mar 2021 19:07:42 GMT

North Carolina allocations are the portion of income your earned while living in North Carolina. Generally, you can use months or days when figuring interest and dividends if your balances were fairly stable.

For example, if you lived in NC for three months, then 25% (3/12 months) of your income will be NC-based. Capital gains should be divided according to the date actually received. You can do the same with your interest and dividends if you wish to go back and check your financial statements.

Re: If I am Part-Year Resident of NC and reported federal Income how do I know what to report for NC Allocations ?

SteamTrain — Thu, 04 Mar 2021 20:26:43 GMT

...and...for a part-year resident, the NC income while Nonresident boxes are usually all zero's (and every box must have a number , don't leave any blank)

"Some" of the NC income while Nonresident boxes are for situations where you, perhaps, continued doing self-employment work in NC while living across the border....or if you had a rental property located in NC that you continued to receive income from (farm, vacation property, rental home), or if you still had your own business location in NC still operating after your move. IF you had none of those then all of the NC income while nonresident boxes will be zero's

Re: If I am Part-Year Resident of NC and reported federal Income how do I know what to report for NC Allocations ?

Kat215 — Fri, 05 Mar 2021 16:51:07 GMT

Thank you for the reply.

Our situation is husband retired in May from military, we claimed FL as home of record but moved to NC in Jan.

Re: If I am Part-Year Resident of NC and reported federal Income how do I know what to report for...

Kat215 — Fri, 05 Mar 2021 16:55:02 GMT

Thank you for the reply.

Husband retired in May from military, we claimed FL as home of record but moved to NC in Jan. I went ahead & divided the months between NC & FL. for the dividends, interest & gains.

I'm pretty sure I did it correctly.

Thanks again.

Re: If I am Part-Year Resident of NC and reported federal Income how do I know what to report for NC Allocations ?

MauryM — Thu, 13 Apr 2023 14:26:18 GMT

What method should be used to calculate the NC portion of S-corp K1?

I own the S-corp and made almost all of the revenue while not living in NC. If I divide NC Revenue / Gross Revenue I get 4%.

If I go by months, I lived in NC 5/12 months, so I get an apportionment of 42%. 10x as much!

If I run a Profit and Loss statement for my S-corp for the time I lived in NC, it actually shows up as a loss!

So which is the proper way to determine apportionment? Turbotax offers no guidance.

Re: If I am Part-Year Resident of NC and reported federal Income how do I know what to report for NC Allocations ?

TomD8 — Thu, 13 Apr 2023 14:38:10 GMT

@MauryM --

See page 5 of the NC tax instructions under Part-Year Resident:

https://www.ncdor.gov/2022-d-401-individual-income-tax-instructions/open

NC wants you to allocate based on when the income was received.