Nonresident in Illinois and NC

[tchrisinwa]

I live in WA state.  I worked in Illinois and NC for one week each and made about $1200 in each state.  I had state income taxes taken out.  Do I need to file state income tax returns?  My federal taxes were AGI over $150K.

[SabrinaD2]

Since you live in Washington state, which does not have a personal income tax, you don't need to file a state income tax return there. However, because you earned income in Illinois and North Carolina, given the amount of only $1,200, you may not need to file in either state. It depends on your filing status. For example, if you are Married Filing Separately (MFS) with itemization in North Carolina or some status related MFS or Single in Illinois, you may need to file non-resident state income tax returns for both states. See information below:

For Illinois:

• As a nonresident, you must file Form IL-1040 and Schedule NR if:
  • You earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50).
  • You want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.
•  If your only income in Illinois is from partnerships, S corporations, or trusts that withheld enough Illinois Income Tax to pay your liability, you aren't required to file Form IL-1040

For North Carolina:

• As a nonresident of North Carolina, you must file Form D-400 if you earned income from NC sources
  •  Your total gross income meets the filing requirements. 
  • Income sources include property ownership, business activities, and gambling in NC

Here are the steps to compile non-resident returns.

1. Go to the Personal profile screen, scroll down to Other State Income, and select Edit.
2. On the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
3. Select Continue to return to the Personal profile screen.

After you finish your federal return, you'll automatically move to the State taxes section, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

Also:

• Select the long form (if the option is available) even if TurboTax defaults to the short form.
• Only report the income attributable to the nonresident state.
• If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state. This will eliminate your tax liability for that state, resulting in a full refund.

Reach back out with filing status information if additional assistance is needed.

[SabrinaD2]

Since you live in Washington state, which does not have a personal income tax, you don't need to file a state income tax return there. However, because you earned income in Illinois and North Carolina, given the amount of only $1,200, you may not need to file in either state. It depends on your filing status. For example, if you are Married Filing Separately (MFS) with itemization in North Carolina or some status related MFS or Single in Illinois, you may need to file non-resident state income tax returns for both states. See information below:

For Illinois:

• As a nonresident, you must file Form IL-1040 and Schedule NR if:
  • You earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50).
  • You want a refund of any Illinois Income Tax withheld in error. You must attach a letter of explanation from your employer.
•  If your only income in Illinois is from partnerships, S corporations, or trusts that withheld enough Illinois Income Tax to pay your liability, you aren't required to file Form IL-1040.

For North Carolina:

• As a nonresident of North Carolina, you must file Form D-400 if you earned income from NC sources
  •  Your total gross income meets the filing requirements. 
  • Income sources include property ownership, business activities, and gambling in NC.

Here are the steps to compile non-resident returns.

1. Go to the Personal profile screen, scroll down to Other State Income, and select Edit.
2. On the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
3. Select Continue to return to the Personal profile screen.

After you finish your federal return, you'll automatically move to the State taxes section, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

Also:

• Select the long form (if the option is available) even if TurboTax defaults to the short form.
• Only report the income attributable to the nonresident state.
• If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state. This will eliminate your tax liability for that state, resulting in a full refund.

Reach back out with filing status information if additional assistance is needed.