Because of the specific state rules involved, the simplest and most accurate way to file this situation is to file a part-year return for North Carolina only. For the purposes of filing the North Carolina return, you "lived" in North Carolina until you moved to Washington. Here's why this will work out correctly:
- Your income that you earned in North Carolina, whether or not you were physically living there, is taxable to North Carolina. Filing part-year resident ensures that only the income you earned in North Carolina will be taxed in North Carolina.
- South Carolina does not have a true part-year return, and your living situation in South Carolina (lived there less than a year) does not fit their situation. According to South Carolina, you either file a full-year resident return with all of your income taxable to South Carolina, and claim a credit for income tax you pay in other states, or you file a SC nonresident return to only claim the South Carolina income. Picking option B is the choice here: your SC nonresident income is $0, because all of that income you earned "living" in SC was earned while working in NC. The other reason why you want to file this way is the next reason.
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Washington does not have state tax. Since they do not have a tax or tax return in Washington, you definitely do not want to have income earned in Washington while living in Washington taxed elsewhere. Since you do not need to file a tax return there, this leaves you with only one tax return to file: North Carolina part-year.
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