Moved from VA to NC. NC allocation instructions have confused me.

[whyme940]

Moved from VA to NC in Sept, still work in VA.  Need to file as NC part year resident: 

W2 shows VA state taxes only.   I understand I need to adjust wages earned based on residency.   NC instructions on TT: "program will calc some fields based on info transferred from fed return.  To make corrections to these calc'd fields, you must correct the original entry in the federal return".  The fields on next screen contain the total W2 wages.  I THINK I should change these to the amt earned while living in NC. but instructions sound like I need to go to my fed return and make adjustments? 

I also have to select a status, and not sure which it should be: 1)NC Resident Income, 2)NR NC Source Income, 3)PY NC Source Income, 4)Not NC Source Income.  I can eliminate choices 2 & 3 since source income means income earned from a NC employer/job.  What is diff between NC Resident Income and Not NC Source Income?

[AnnetteB6]

As long as the numbers shown on the allocation page are not greyed out, you can adjust them directly on that page instead of making any changes on the Federal return.  For example, you should not change your W-2 to enter the proportion of your wages that you earned while you were a resident of NC.  Just enter the amount on the NC allocation form.

You would choose the option that shows it is NC Resident Income for wages earned in VA while you were a resident of NC.  If you had some specific income from VA that you received while a resident of NC, then that income would be categorized as Not NC Source Income.  For example, rental income from a property in VA or income from a spouse who was not a resident of NC but had income reported on the Federal return.  

NC Resident Income will be taxed on the NC return; Not NC Source Income is not taxed on the NC return.

[whyme940]

I was allowed to change the amounts on the wages allocation screen to the amount earned while a NC resident and I selected "NC Resident Income".  Looked like all was well and my problem solved until I ran the final analysis prior to actually filing.  TT reverted the allocated wages I had entered to the original amounts shown on the fed form, so NC is taxing on the entire year income instead of only 4 months.  I went back and checked the VA portion to see if it had happened there as well, but those allocations remain unchanged.

Why is the NC portion being automatically changed to total year wages?  Date moved was included in NC residency info.  TT directions state: program will calc some of the fields on this form based on info transferred from the fed return. To make corrections to these calc'd field, you must correct the original entry in the fed return. Other fields will need to be completed by you in order to prepare an accurate return.  If none of the income is from NC, you must enter a zero. On the next screen enter your NC p-y income allocations.  You need to enter amts for the income earned while a NC resident, including NC source income you earned while a nonresident.

I go to the next screen and it shows boxes: payers name / wages / status   The fields under the boxes contain my/spouse employer / total w2 wages / blank.  I changed the total wages to the 4 months earned in VA while living in NC.    I complete the remaining portion of NC, then run analysis, and WHAM, amts are changed back to full federal amt earned.  What the heck is going on? 

[MarilynG1]

You are correct that when you allocated your North Carolina income amounts in your Part-Year NC interview, they should stay that way.

If you're using TurboTax Online, try closing the program, clear your Cache and Cookies  and re-visit the North Carolina interview.

If this doesn't resolve your issue, you could try Deleting North Carolina and then adding it and stepping through the interview again. 

Since we can't see your return in this forum, if you still can't resolve your issue, you can Contact TurboTax Help.

This link has info on Allocating Income as a Part-Year Resident and filing a 

Part-Year Resident Return.