Part time res NC & VA, @ state review after allocating 33% of income to NC it shows refund using this amount. @ Final review refund is calc'd from 100% of income. Why?

My company incorrectly did not stop payroll deductions from NC nor start VA deductions, so my w-2 shows all my income in "NC" even though this was not the case. I lived and worked in NC 1/3 of the year and VA 2/3 of the year. I did not change companies.

116

Expert Alumni

Jan 31, 2023 3:54:57 PM

Your final refund amount will be incorrect if you did not allocate your income to North Carolina and Virginia.

File a part-year North Carolina and part-year Virginia income tax return.

Each return will ask how much you made in that state. Since your W-2 shows all NC income and withholding, you will have to figure out the split based on your paychecks.

You will get a big refund from NC because 100% of your NC withholding will be used against 33% of your income.

You will owe a lot to VA because no state tax was withheld on 2/3 of your total income.

You can file both returns and wait to pay your VA tax until you get your NC refund. Your VA payment is due May 1.

Individual Income Tax Filing Due Dates

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Part time res NC & VA, @ state review after allocating 33% of income to NC it shows refund using this amount. @ Final review refund is calc'd from 100% of income. Why?