Lived in NJ for 11 months, moved to NC in late Nov

[KellyE2024taxes]

Hello and thanks in advance for the help. Holy confusing, tax girls and boys! This info below pertains to 2024 tax year:

• I lived in NJ from Jan 1 to Nov 22. I worked for a company located in NJ
• I purchased a home in NC on Sept 3. I moved to NC on Nov 22 to live here permanently. I work for the same NJ company, working from my NC home
• My real estate attorney considered me a "NJ resident" and no estimated tax owed on the sale of my house (aka "exit tax") was withheld at closing
• I sold my house in NJ on Dec 30, 2024
• Income taxes were withheld by my job for both NJ and NC ($4,800 and $1,300, respectively)

The question is: What NJ and NC returns do I file? It seems like the answer is 3 forms, but looking for confirmation, please:

• NJ-1040 (resident)
• NJ-NR 1040 (non resident)
• NC D-400 Schedule PN (part year resident and nonresident schedule)

Thanks again for the help! 

Kelly

[DianeW777]

Yes, are correct.  You will file both a resident and nonresident return for New Jersey (NJ).  See the information below from the NJ Part Year Residents and Nonresidents Instruction Guide on page 4.

• If you received income from New Jersey sources during both your residency and nonresidency periods, you must file both a NJ-1040 and a NJ-1040NR. You must report the income you received during the time you were a resident on your resident return.

In North Carolina (NC) you will file Form D-400 as a part year resident.  NCDOR Part Year and Nonresidents

The sale of your NJ home will be included on both returns since you were a resident of NC at the time of the sale.  Below will give you some guidance on income taxed to two states.

State Returns - Prepare the nonresident state first for NJ.

1. Report the sale in the state where the property resides.
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

All other income will be reported where the income was earned on both the part year resident returns. See Exception below.

If you need to use your pay stubs, you can do so. For other income like interest or dividends, you should look at your statements or talk to your financial advisor.

Exception: Since NJ follows the Convenience of the Employer rule now, your income may ‌still be NJ income even if you are telecommuting (if for your own convenience, rather than for the necessity of their employer). Please see Convenience of the Employer Rule FAQ  for more information. Follow the same rules for a credit if this income is also taxed to both states