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Residency vs. Non-resident state income

I have been fully retired since 2015, and I moved from TN to NC in April 2021.  TurboTax is telling me I need to "allocate my  income earned" while I was a No. Carolina resident. My only sources of income are withdrawals from my IRA and Social Security checks.  On my 1099-R form, there is an amount shown for state taxes withheld, but no "state distribution" amount is shown. I have never actually worked (earned any income) since moving to No. Carolina.  So do I need to allocate (pro-rate) to the State of NC my IRA and SS payments received in 2021 for the 9 months that I have been living in NC, or are all those payments considered as "Federal"??

Reggie Henry 

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2 Replies
JohnB5677
Expert Alumni

Residency vs. Non-resident state income

Income is allocated to the state that you live in.  For this year you will owe taxes in both TN and NC.  From what you said you moved out of TN in April.  For the sake of discussion, I will say April 15th.

 

That is 105 days out of 365

105 / 365 = 28.8% of the year you lived in TN and 71.2% you lived in NC.

You can allocate your income based on these percentages.

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Residency vs. Non-resident state income

OK - Thank you for the prompt response!

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