Part resident of 2 states while working in 1. Help!

[Dthbft563]

Hi everyone. 

My son desperately needs help with his first year of doing taxes on his own. He was a full time student prior and his father claimed him on his taxes . He has aged out of his father claiming him as a full-time student dependant and is trying to complete his taxes himself for the first time. 

He was a SC resident and a working full- time student there until September of 2025. He had gotten an internship in the summer of 2025 and was working for a SC company while still living in SC and attending college.  The company let him work remotely (in a different SC city than the comoany was in) while he finished up school. The company made him a future hiring offer upon graduation to come work for them full-time.  He graduated college in SC while working for this company in SC and then moved to NC to live in September of 2025 (right near the border of NC & SC). He was a part year resident of both SC and NC, but only worked in SC. He still works for the same SC company, only now living in NC.  For 2025 he lived basically  8 months in SC and 4 months in NC.  I know he files state taxes for both states, which he is working on now with Turbo Tax, but the software is telling him he pays $0 taxes for NC. He's unsure if this is right and I do not know. His dad threw him to the wolves on taxes last minute, so here we are. He is also suffering through after Covid brain fog and is having difficulty understanding it all. I'm trying to get him help from afar. Any thoughts on the 2 state partial resident situation and how it works with paying taxes to North Carolins if he lived there for 4 months? 

Thank you! 

[DavidD66]

In the personal section of TurboTax, the program asks several questions to the effect of Did you live in any other state? and Did you earn money in any other state?  He needs to make sure he answers those correctly.  He needs to indicate in each state tax return that his residency status was a part-year resident.  When going through each state tax return in TurboTax there will be a section where he indicates how much of his income he earned in that state.  He just plugs in the applicable amount.  What he earned in North Carolina is taxable by North Carolina, and what he earned in South Carolina is taxable by South Carolina.   

[Dthbft563]

Hi DavidD66,

How does he figure out the exact amount  he earned while living in NC for the 4 months? Or does TT figure the amount out?

Thank you again!  

[RogerD1 · Accepted solution]

I think your son may have done the North Carolina return correctly and a zero balance due is correct.  Since all the wage income was earned in South Carolina, it is being fully taxed by them.  North Carolina does not tax income that is not sourced to their state, so their tax on wages earned in South Carolina will indeed be zero.  If you son's only income is wages from South Carolina, a zero balance due to NC is the right answer.

If there are other income items such as interest, dividends, etc. those would get apportioned with 2/3 to South Carolina and 1/3 to North Carolina.

[Dthbft563]

Thank you RogerD1!