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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.
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.
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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