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My home state & residence is VA. I went to college & worked in NC Jan-May. Was never a resident of NC. I came back to VA for college & work May-Dec. How to fill out form?

Resident of VA since 2003. Went to school and worked in NC from Jan-May, but never changed my residency. Came back to VA (home of residence) and went to school & worked here May-Dec. Form asks if I lived in another state in 2022. Yes. Then asks Previous state of residence (where you lived before moving). Chose VA - because residency never changed. Now asks Date you became a resident of Virginia .. I never stopped being a resident. It wont let me choose before 2022 - But even though I lived out of state, I never had it as my residence.
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2 Replies
TomD8
Level 15

My home state & residence is VA. I went to college & worked in NC Jan-May. Was never a resident of NC. I came back to VA for college & work May-Dec. How to fill out form?

In the Personal Info section of TT, enter VA as your State of Residence.  Answer No to the question about living in another state.  Indicate that you had Other State Income from NC.

This will prompt the program to generate a non-resident NC tax return and a VA resident tax return.

The income you earned in NC is taxable by NC.

ALL your income, including your earnings from NC, is taxable by your home state of VA.

VA will give you a credit for the taxes paid to NC.

In TT, prepare the non-resident tax return before the home state tax return, so that the program can apply the credit.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
AmyC
Employee Tax Expert

My home state & residence is VA. I went to college & worked in NC Jan-May. Was never a resident of NC. I came back to VA for college & work May-Dec. How to fill out form?

Somehow you got into the part year. Be sure in your personal information section, you have only VA listed for residency. When you go through the nonresident NC state, verify the filing information in the summary section and edit as needed.

 

Your resident state taxes all income but gives a credit for income taxed by another state.  Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

 

  1. First, prepare your non-resident NC return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
  2. Then prepare your resident state VA return and it will generate a credit for your income already being taxed in the non-resident state. 
  3. The credit will be the lower of the state tax liabilities on the lowest taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

 

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

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