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:
Thanks for any help.
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.
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.