Moved and stayed working remote

Forum|Forum|6 years ago
January 28, 2020
1 reply
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I lived in Indiana between 1/1/2019-8/31/2019 and moved to North Carolina on 9/1/2019. In the move I stayed on working for my employer who is based in Indiana and I am working remotely out of home in North Carolina. They are not registered for taxes in North Carolina so all taxes came out of my check for Indiana.

I was told previously that long term I would likely need to file an Indiana state return and use the money paid to the state as a credit on my North Carolina return but the situation is more complex as I was split between the states this year.

What is the best way for me to proceed filing? I was hoping the software would have walked me through the situation but unfortunately it doesn't appear to have.

Best answer by AmyC

Because the employer is sending taxes to IN, you will need to prepare a non-resident return to claim a full refund and then prepare your NC return and pay them.

KatrinaB48

Level 15

This year, you will need to file a part-year resident tax return for each state. When completing the two returns make sure you allocate all of this employer's income to the state of Indiana.

Moving forward, you should only file a North Carolina resident state return. It doesn't matter where your employer is located on your individual tax return. You only pay taxes in your home state of residency.

Please view how to file a part-year state return. Also, view how to allocate income on a part-year return.

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menududeAuthor

Level 2

Thanks Katrina. If my employer is only collecting/sending taxes to Indiana how will North Carolina know what I had paid?

AmyCAnswer

Level 15

Because the employer is sending taxes to IN, you will need to prepare a non-resident return to claim a full refund and then prepare your NC return and pay them.

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