You'll need to sign in or create an account to connect with an expert.
If you are a resident of Virginia, but have income from North Carolina, then you will need to file tax returns for both states. There is not a reciprocity agreement in place with these states.
You will file a Virginia resident tax return and claim a tax credit for taxes paid to North Carolina.
You will file a non-resident North Carolina return to report the income that was earned in North Carolina.
After finishing your Federal return, you should complete the non-resident (NC) return first and then your resident (VA) return.
edited 2/8/16 5:11 am PST to change order of state completion
So does this mean you will essentially be paying income taxes in both NC and VA??
No, you are not double taxed. You will pay tax on all of your income in Virginia if you are a resident of Virginia. You will also pay tax on your North Carolina sourced income as a nonresident for income earned in the state. However, your resident state of Virginia will give you a credit of tax paid to another state (North Carolina) so you are not double-taxed.
For more information, please see Credit for Taxes Paid to Another State.
@adangelico91
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
NOVA_info
New Member
jennifereallen3-
New Member
MarkF6
Returning Member
jk0906
New Member
stanleystanzman
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.