Moved from NC to VA but worked in VA the entire year

[Diy2024]

For the first two months of 2024 I lived in NC but worked in VA.  I then moved to VA and continued to work for the same employer.  If I lived in NC the entire year but worked in VA, I believe that I would get a credit on my NC taxes for taxes paid in VA.  How does it work when I move from one state to another?  Do I allocate my earnings based on where I was living at the time?  Does NC get taxes on my VA income for the time that I lived in NC and worked in VA while VA gets taxes on the income that I earned in VA while living in VA?

[MarilynG1]

Yes, you will file a Part Year Resident return for both North Carolina and Virginia.  You are correct, you'll report your VA wages earned while you lived in NC.  In VA, you'll report all your wages (since they are all VA source), but get a credit for tax paid to NC, so you won't be double-taxed on the same income. 

Prepare your NC Part-Year Resident return first.  Here's more info on How to File a Part-Year Resident Return.

@Diy2024 

[Diy2024]

Thanks.  Part of the the information for the NC Part Year Resident return is entered on the Wages Allocation page.  Do I only enter the amount earned while living in NC, or do I need to account for all of the income on the W-2?  If I only need to account for the amount earned in VA while living in NC, which description do I use?  There are four available.

NC Resident Income - This could be the one.  The income is earned while a resident of NC even though it is earned in VA.

NR NC Source Income - This probably isn't the right one.  The income is not from an NC source.

PY NC Source Income - This is a Part Year return, but the income is not from an NC source.

Not NC Source Income - This might be the one to use.  The income is from VA.

If I need to account for all of the income on the W-2, I probably need to split it into two chunks - one earned while an NC resident and one while a VA resident.  Maybe the income in VA while an NC resident would be NC Resident Income and the income earned in VA while a VA resident would be Not NC Source Income.

[MaryK4 · Accepted solution]

For the North Carolina allocation, you only enter the amount you earned while a North Carolina resident, then any income you earned in North Carolina when you were not a resident.  You do not need to account for all the income on the W2 @Diy2024