Multiple States, where do I file?

Forum|Forum|5 years ago
March 21, 2021
1 reply
5 views

I lived in NC for 8 months before moving to begin my job in VA for the rest of the year. While residing in NC, I lived with my parents and made no recurring income as I was a student. During that time, my only source of income was from a Signing + Relocation Bonus in March of ($17,802 Pre-Tax) $11,500 I received while still in NC.

Do I need to file a state return in NC? If so, does it qualify for the Part-Year Resident Credit for Taxes Paid to Another State for VA and NC?

Basically, if my total income is $54,774. Do I claim:

$17802 in NC and $38198 in VA?
$17802 in NC and $54,774 in VA with $17802 as taxes paid to another state?
$17802 in NC with $17802 in taxes paid to another state and $54,774 in VA.
$17802 in NC with $17802 in taxes paid to another state and $54,774 in VA with $17802 as taxes paid to another state? (This one just seems wrong).
$54,774 in VA?

Thanks for any help.

Best answer by MaryK4

You will file a Part-Year North Carolina and Part-Year Virginia tax return. You will report the $11,500 to North Carolina because you received it while you were still in NC. You will have to report the total ($54,774) as Virginia income. You will get the credit for the taxes paid to another state for the $11,500 you paid to North Carolina.

The credit for taxes paid to another state applies to your resident return when you pay tax to a nonresident state for state source income which is also reported on your resident tax return.

MaryK4Answer

Level 15

The credit for taxes paid to another state applies to your resident return when you pay tax to a nonresident state for state source income which is also reported on your resident tax return.

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