I am an NJ Resident but did 1099 NEC work in NC. Does the amount earned in NC get included in NJ state income?

[SabrinaD2]

Yes, as a New Jersey resident who earned income in North Carolina, you need to report this income on both your New Jersey and North Carolina state tax returns. it does get included in your New Jersey income because New Jersey taxes worldwide income and North Carolina requires you to file if you earned income there.

Here’s how you can file both NJ and NC in TurboTax and to avoid be taxed twice by both states:

Enter Personal Information in TurboTax

1. Open TurboTax: Open TurboTax and start your tax return.
2. Personal Info Section: Go to the "Personal Info" or "My Info" tab.
3. Residency Information: Enter your residency details. Indicate that you are a resident of New Jersey.
4. Other State Income: When asked if you made money in any other states, select "Yes" and choose North Carolina from the drop-down menu

Enter 1099-NEC Income in TurboTax

1. Search for 1099-NEC: Use the search bar with the magnifying glass icon and type "1099-NEC."
2. Jump to Link: Click on the "Jump to 1099-NEC" link that appears.
3. Enter Income: Follow the on-screen instructions to enter your 1099-NEC income.

Reporting Income Earned in Another State

1. Federal Return: Complete your federal tax return first.
2. State Taxes Section: After completing your federal return, proceed to the "State Taxes" section.
   • Nonresident State Return: Select North Carolina and complete the nonresident state return first to report the income earned there

• Resident State Return: Select New Jersey and complete the resident state return. TurboTax will guide you through claiming a credit for taxes paid to North Carolina
• Credit for Taxes Paid: TurboTax will guide you and help you to claim a credit for taxes paid to other states to avoid double taxation