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Level 1
February 26, 2023
Solved

Non resident state return

  • February 26, 2023
  • 1 reply
  • 10 views

looking to get started in Turbo tax to file a non-resident state return to get a sale of property showing there (NC) and then taken off of my resident state return (VA). Capital gains showing too large on my resident state. Have already completed the Federal return. I listed the sale under other investments on federal return. How do I get started in Turbo Tax (NC return) to make this start to happen? 

Best answer by DawnC

The instructions for preparing a nonresident return can be found in this link.    You should prepare the nonresident return before your resident state return.    You pay tax on all your income to your resident state.   However, your resident state will usually offer you a credit for the taxes paid to a non-resident state.  It is for that reason, you want to prepare the nonresident first, so the credit for tax paid to NC can be credited to your VA return.   Use the instructions to prepare the NC return and then go back through your VA return to ensure you are getting the credit for tax paid to another state.  

1 reply

DawnC
DawnCAnswer
Level 15
February 26, 2023

The instructions for preparing a nonresident return can be found in this link.    You should prepare the nonresident return before your resident state return.    You pay tax on all your income to your resident state.   However, your resident state will usually offer you a credit for the taxes paid to a non-resident state.  It is for that reason, you want to prepare the nonresident first, so the credit for tax paid to NC can be credited to your VA return.   Use the instructions to prepare the NC return and then go back through your VA return to ensure you are getting the credit for tax paid to another state.  

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