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New Member
posted Mar 15, 2021 1:06:19 PM

North Carolina state withholding wages for non-residents

I am resident of Florida but had wages in North Carolina in 2020. Can I claim a full refund of the NC state taxes withheld?

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4 Replies
Expert Alumni
Mar 15, 2021 1:28:15 PM

You must file a nonresident North Carolina tax return to get the withholding refunded if you do not owe any tax.  Nonresidents are taxed on income earned in the state.

New Member
Mar 18, 2021 10:10:40 AM

So even though my actual state withholding tax from wages in NC was $6,857, I only get a refund of $240.00 based on my filing status as a non resident. Is this right? Am I subject to state withholding tax if I am not a NC resident? 

Level 15
Mar 18, 2021 10:39:52 AM

Yes...all of the income earned in NC is NC taxable...assuming you physically worked there. 

(...........and you are not talking about a Military W-2, or are the civilian spouse of Military person posted to NC...different rules for those).

 

Make sure you go thru the Nonresident income allocations in the NC Nonresident interview.  Only the NC W-2 wages are NC nonresident income...the other stuff on the extra allocation pages would normally be all zero's....unless you also get income from  rental properties you own in NC, or own a business located in NC.

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Now, if you were in physically located in Florida while doing that work for an NC company site, then NC withholding should not have been done..... 

Level 15
Mar 18, 2021 10:47:20 AM

Yes, you are, and that's correct. 

When you are a nonresident and receive wages while in North Carolina, and total gross income from all sources exceeds certain amounts you must file a North Carolina return and report that income.

Please see Who Must File a North Carolina Individual Income Tax Return? in the North Carolina Individual Income Tax Instructions for more information.