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I relocated to PA from NC in 2020 related to a new job. I got a W2 from an old NC job and a 1099-NEC from my old job (consulting work after moving to PA). Do I need to enter both (NC W2 and NC 1099-NEC) amounts in the PA State (filling as a Resident since I moved in April) 'Any Double-Taxed Income from North Carolina?' screen? What do I need to enter information on the "Tax Due to North Carolina on income above' line?
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You should not have any double-taxed income if you moved from one state to another. Double-taxed income means two states are taxing the same income, usually because you live in one state but work in a second state.
Report all the income your earned in North Carolina on a part-year NC return. Do the same with Pennsylvania.
In the Pennsylvania section, on the screen Credit for Tax Paid to Another State, say No to "Did you earn income in another state in 2020?" This section only applies if you earned NC income while living in PA.
Do not enter any amounts on the worksheet "Any Double-Taxed Income from North Carolina" or on "Tax Due to North Carolina on Income above".
Thank you so much for your response! It is very helpful! Actually, I got a 1099-NEC (for the work I did after moving to PA) from the NC company where I worked for as well as a W-2 (for the work while I lived in NC). So, I don't need to pay NC state tax for the 1099-NEC income?
Thanks for your help!!
No, the Form 1099-NEC income would not be taxed by NC unless you performed the work in NC. It does not matter that it was a NC company that paid you if you performed the work in PA.
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