What does NR NC Source Income mean? What does Not NC Source Income mean?

[KatrinaB48 · Accepted solution]

The abbreviation NR stands for a nonresident. The program is wanting to know what portion of income was earned in North Carolina. When filing multiple state returns, you need to allocate your income to the state in which it was earned. This can be a little tricky when filing a nonresident state return. You need to complete your nonresident state return before your resident or part-year resident return. That way you will receive credit on your resident state return for the taxes paid to another state.

Please view the nonresident state faq for instructions on filing this type of return. You may need to follow the instructions within to delete your resident state return and start over. There are other helpful links within this faq as well.

[vandygirlcr]

I am interested in the answer to your second question. I moved to NC in April of this year. My employer is not in NC (not NC Source Income), but NC taxes were withheld. 

When I answer the question on wages allocation, it states to select "Not NC Source Income" if it was earned while not a resident AND/OR was not from an NC Source. I was a resident, but it was not from an NC source, and the "OR" indicates I should choose "Not NC Source Income". If I choose that, TurboTax says I should get all those taxes back. 

[SteamTrain]

No...NC sourced income refers to income you earned while living in NC......interest, dividends, capital gains, salaries as long as you were physically present in NC at the time.  As such, that job that withheld NC taxes was NC-Sourced (if you were physically located in NC when you performed that job).  Where the employer's main office is immaterial.  (Just because you work for Amazon in Raleigh, doesn't mean that the income is WA state income).

For you, Not NC sourced income is any income you received before you lived in NC, as long as you didn't physically work in NC yourself before your move, (that second part can happen for people living just across the border from NC)

[vandygirlcr]

Thank you, SteamTrain!! The TurboTax guiding verbiage is very misleading. But I knew it would be too good to be true, so your explanation makes perfect sense.