topic North Carolina state withholding wages for non-residents in State tax filing

North Carolina state withholding wages for non-residents

eddocot — Mon, 15 Mar 2021 20:06:19 GMT

I am resident of Florida but had wages in North Carolina in 2020. Can I claim a full refund of the NC state taxes withheld?

Re: North Carolina state withholding wages for non-residents

MaryK4 — Mon, 15 Mar 2021 20:28:15 GMT

You must file a nonresident North Carolina tax return to get the withholding refunded if you do not owe any tax. Nonresidents are taxed on income earned in the state.

Re: North Carolina state withholding wages for non-residents

eddocot — Thu, 18 Mar 2021 17:10:40 GMT

So even though my actual state withholding tax from wages in NC was $6,857, I only get a refund of $240.00 based on my filing status as a non resident. Is this right? Am I subject to state withholding tax if I am not a NC resident?

Re: North Carolina state withholding wages for non-residents

SteamTrain — Thu, 18 Mar 2021 17:39:52 GMT

Yes...all of the income earned in NC is NC taxable...assuming you physically worked there.

(...........and you are not talking about a Military W-2, or are the civilian spouse of Military person posted to NC...different rules for those).

Make sure you go thru the Nonresident income allocations in the NC Nonresident interview. Only the NC W-2 wages are NC nonresident income...the other stuff on the extra allocation pages would normally be all zero's....unless you also get income from rental properties you own in NC, or own a business located in NC.

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Now, if you were in physically located in Florida while doing that work for an NC company site, then NC withholding should not have been done.....

Re: North Carolina state withholding wages for non-residents

JohnW152 — Thu, 18 Mar 2021 17:47:20 GMT

Yes, you are, and that's correct.

When you are a nonresident and receive wages while in North Carolina, and total gross income from all sources exceeds certain amounts you must file a North Carolina return and report that income.

Please see Who Must File a North Carolina Individual Income Tax Return? in the North Carolina Individual Income Tax Instructions for more information.