If I live in Florida but work remotely for a company in North Carolina, do I owe NC income tax?

[matt16]

I am a full-time employee (not a contractor) for a company that does business in North Carolina. If I live in and work remotely from Florida and never step foot in NC, do I owe any income tax to NC?

[Zbucklyo]

No, you do not.

[acaral]

sorry to open a post so old but I have the same question and I understand the answer but my problem is my company by mistake held my taxes for North Carolina and in the W-2 says how much I paid for.

How can I recover that money back?

[FangxiaL]

It might not be a mistake by withholding state income tax for NC if your employer treats the income as NC-sourced income. In this case, you need to file a NC nonresident return.  If it is truly a mistake, you need to file a nonresident return to claim your refund. 

@acaral

[acaral]

 Hello FangxiaL,

thanks for you response. I talked with my employer this year and now they change my residence to Florida so tehy are not withhelding NC state taxes anymore.

THe problem is, if I file a nonresident NC state tazes and put teh money on the W2. It only refund me like a 1/7 of the total ammount. Shouldn't I get all the money?

[RaifH]

Yes, you should be refunded the entire amount of North Carolina taxes withheld in Box 17 of your W-2. To do this, you want to file a nonresident North Carolina return and allocate $0 of your wages to North Carolina. If you are not getting the entire amount refunded, something was entered incorrectly in the allocation screens. Make sure none of your income from this job or anything else is being allocated to North Carolina. 

In the North Carolina nonresident return, on the Wages Allocation screen under Part-Year and Nonresident Income,  use the Status Pulldown menu and select Not NC Source Income.