Can I get NC state tax refund

[wenbiaohuang]

Hi there,

I lived in Virginia and worked remotely for company in North Carolina, last year, I received 2 W2 form for 2023, one shows NC state income and tax, and federal wages and tax information are blank. the 2nd W2 shows Virginia state income and tax and federal wages and tax information are filled. I’m full year resident of Virginia and non resident of North Carolina, shall I file North Carolina state income tax return and get the refund as a nonresident? Please advise on this, thanks!

wilbur

[TomD8]

If you never physically worked within North Carolina during the tax year, then your work income is not taxable by North Carolina.  In that case you would file a non-resident NC tax return on which you allocate zero income to NC in order to obtain a full refund of the incorrectly withheld NC taxes.

[wenbiaohuang]

Thanks for your answer, by the way, in my NC state W2 form, only state wages(box 16) and state income tax(box 17) are filled , box 1 to 10(federal wages and taxes) are left blank, when I file NC non resident tax return, shall I only use NC state wages(box 16) number as my total yearly wage or I need to use my 2nd W2 showing Federal wages and taxes and Virginia state wages and taxes? How to calculate Federal Adjusted Gross Income on the NC state tax form? Is federal adjusted gross income should be calculated using all my wages from state NC and VA, or only using state NC wages? please advise on this, thanks for your help!

Wilbur

[AnnetteB6]

You will enter your W-2 information on the Federal return.  When you get to the state section of the W-2, enter both the Virginia information and the North Carolina information.  After entering the first line of state information, click the blue + Add Another State link to enter the information for the other state.  

Even though it appears that you have two W-2s, the information is meant to be reported as a single W-2 in your Federal return.  There is just a limitation for printing multiple states' data on the paper W-2 form.

When your wage information is entered as a single W-2 in your Federal return, the state returns will pick up the information they need to proceed.  Feel free to ask additional questions after you have gone through the state returns again.

@wenbiaohuang 

[twoho]

Thank you!  So, as long as the 2nd state is listed with the taxes, I wouldn't need to complete a separate non-resident return for North Carolina?

[KeshaH]

You will need to file a nonresident return and a resident return. If your nonresident return was North Carolina, you'll need to prepare that return first. None of your income should show as taxable to North Carolina, so you should get a refund of the tax that you paid.

[SteamTrain]

@twoho   

If you were not an NC resident, you would Zero NC wages Only IF you didn't physically work in NC. 

(that was the subject of the original post, and may not be your situation)

[twoho]

Ok thank you!  I just didn't know if TurboTax would file on my behalf as the tax was listed on my W2 along with Minnesota (as my employer took out NC taxes in error) and it doesn't sound like it does file a separate form for NC.  Thank you for the advice!

[twoho]

That helps, thank you so much!  Yes, not a resident of North Carolina, but my employer is and they took out taxes.  Thanks!