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Yes. You were a part-year resident of North Carolina if you moved to North Carolina and became a resident of North Carolina during the tax year.
Per the State of North Carolina, you have to file a North Carolina tax return if:
If you have determined you need two state returns, the first thing you want to do is make sure you've filled out the Personal Info section correctly:
After you finish your federal return, you'll automatically move to the State tab, where you'll see your both state returns.
My husband and I were part year residents for MD Jan. 1, 2021 to August 24, 2021 and then moved to NC from Aug. 25th - Dec. 31st. His company stayed the same and is located in Rockville, MD. Only MD taxes were taken out for all of 2021. I believe I correctly got credit on MD but I cannot figure out how to fill out the NC part year form. I am hung up on the question where it places his whole wage in and has it marked as Not NC source income. I thought since I calculated MD's amount as 65% and NC amount as 35% on the MD return, that Turbotax would place everything appropriately. It says if I need to make changes in this screen, then I have to do it at the W2 area in the Federal return. I am scared to change something there since that is not the W2 that the IRS sees. I'm not sure if I missed checkmarking something that it didn't allocate it for me. Also if I am on the right path and I need to manually alter it, do I need to send paper returns to the states - meaning I send MD a copy of my NC return and vice versa - therefore losing out on the quickness of e-file. If someone is able to help with an example calculation or how I should fill out the questions. Thanks in advance.
In the federal part of your return be sure to add another state in the W-2. Enter the wages for the North Carolina (NC) period and use the federal ID number as the state ID number without any dashes. This should carry the correct wages to NC to complete your part year resident tax return.
Hello Diane,
I won't get in trouble for adding something like that to the W-2? It did work and allow me to change the not from NC Source amount to the 65% of MD and 35% of NC. The next question is if I noticed that my MD refund increased once I told it the 35% amount for NC - I assume this means I was credited for the NC residency amount. Now When I fill out NC and it says I owe about $2,000 in taxes, which I would expect - if I complete the section under NC tax credit for taxes paid to MD, it gives me a credit which brings down what I owe to a dollar and says attach my MD return. I feel like I created a double credit? Should I remove the NC state tax credit section?
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