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IRA and HSA Contributions for Part Year Residency - NC and AZ

I moved from NC to AZ mid-year 2025, so am filing two part year residency state tax forms.

Turbotax want so split both my IRA contribution and HSA personal (not employer) contribution equally between the states, however all of the income was received in NC. 

How do I allocate the contributions to NC? 

On the forum there are plenty of answers from ~2021 saying TurboTax will let me do this - but I am not finding the option so possibly TT has changed.

 

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1 Reply
RobertB4444
Employee Tax Expert

IRA and HSA Contributions for Part Year Residency - NC and AZ

First, both Arizona and North Carolina have a 183 day residency rule which says if you were a resident for more than 183 days then you are a full-year resident.  So when exactly did you move?

 

Whichever state is the one you end up being a resident of for the year is the state that you should do last.  Do the other state as a part-year resident first and adjust the income in that state.  Then when you do the full year resident state you will take a deduction for the taxes that you paid in the part year residency state.

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