Residency status NY NC IL and filing order

[hellotax1111]

Hello

Here is some info.

1) Would you please confirm my residency status for each state tax purposes and next steps based on the below? Is it NY full resident, NC nonresident and IL non resident? 
2) In what order do I file each state to law sure I get the correct refund from whichever state? 

• I had an apartment in NYC for all 2025.
• I work remotely so I came back to visit NC and was working on the weekdays when I was in NC. I'm originally from NC and never changed my drivers license in NC. I got a state ID for NYC when I went there not a drivers license. I was in NC for only 120 days, less than 183 days. I’m originally from NC.
• I did not update the employer on my address change and they have tax locations in both states. So the W2 has NC for all year.

[MaryK4]

You are definitely a New York full year resident, at the very least a statutory resident.  You can put that you are a North Carolina nonresident if you established New York domicile.  You should make sure that you update where you are working with your employer-because North Carolina income tax was withheld  the entire year.  You can allocate your North Carolina income if you file a nonresident return.  Based on your facts, there is nothing to indicate you have any ties to Illinois.  

A North Carolina income tax resident is someone domiciled in the state or present for more than 183 days during the tax year. Residents are taxed on all income, while nonresidents only pay tax on NC-sourced income. Residents moving out remain residents until a new domicile is established elsewhere.  Individual Income Filing Requirements

You are a New York State resident for income tax purposes if:

• your domicile is New York State; or
• you maintain a permanent place of abode in New York State for substantially all of the taxable year and spend 184 days or more in New York State during the taxable year, whether or not you are domiciled in New York State for any portion of the taxable year.  See Income tax definitions - Tax.NY.gov

[hellotax1111]

Thank you I have some follow ups 

1. I forgot to mention I have a rental property in Illinois and never lived there so I’d also be an Illinois nonresident correct?  NYC full resident, NC non resident and IL non resident? 

2. Could you please also confirm my second question in the original post above? Here it is again:

In what order do I file each state to law sure I get the correct refund from whichever state? (NY , NC, IL)

3. Since NC withheld taxes on my W2 will it be refunded in my tax return when I put how many days I was in NC?

4. Can you please clarify when you mention I can file as a NC non resident if I made nyc my domicile? I had a NC license but I also got an nyc state id and I voted in nyc. I also had an apartment there the whole year even though I wasn’t there the whole year. 
Does the above indicate I established domicile in NY? 

Also just for knowledge if I hadn’t established NY domicile are you suggesting I’d need to file as NC part year resident instead of non resident (so all my income would be taxed for my days in NC rather than only the NC source income I believe)

5. Could you please confirm if one state should be giving me a credit and which one/for what?

[DianeW777]

Let's try to answer your questions in the order you posted them.

1. Yes, you are an IL nonresident. If your rental meets the IL filing requirements: 
   • a nonresident, you must file Form IL-1040 and Schedule NR if you earned enough taxable income from Illinois sources to have a tax liability ( i.e., your Illinois base income from Schedule NR, Step 5, Line 46, is greater than your Illinois exemption allowance on Schedule NR, Step 5, Line 50),
2. File the nonresidency states first, then your resident state and/or part year resident states last.
3. It's possible to receive a full refund from NC if you file as a NYS resident for all of 2025. If this is what you decide, then you would file a NC return to receive your refund - no days lived there- and then the NYS return will have a tax liability. It sounds like this is how you should file for 2025.
4. If you decided to file as part year resident in NC you would receive a credit for taxes paid to NYS on the income that would be taxed in both states. NYS taxes all income that is derived from a NY employer so it will not change the income amount that is taxed to NYS even if you file part year residency. The credit in NC would be the lesser of their own tax on the part year earnings or the tax paid to NYS. You had a job and a residence in NYS all year, i.e., a full year NYS residency makes sense.
5. Part year residency means that all income earned while in a specific state as a resident would be included on that state return. A nonresident state like NYS will tax all money derived from a NYS employer regardless of residency.
   • New York State only taxes nonresidents on income derived from New York Sources, which generally means work physically performed within NY state. However, under the 'convenience of the employer' rule, if you work remotely for a NY company, your income is still taxable by NY unless the employer requires you to work remotely. 
   • NYS FAQs Filing Requirements, Residency, Telecommuting

State Returns - Your resident state requires you to include all worldwide income. Assume both states require income tax returns to be filed: 

1. Report the income on each state return that is from the nonresident state
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

@hellotax1111