Resolved!! California resident filing non-resident state tax return in North Carolina

[San Diego]

Hi, I have several questions about saving money while filing multiple state tax returns, so thank you in advance for reading and responding! 

~  I live and work at a full-time onsite job in California, and file federal and California state income taxes every year through TurboTax Deluxe with state disc desktop version (because I also help file for my uncle an cousin who don't make much money). 

~ In 2019, I did online freelance work (all REMOTELY) for a company based in North Carolina and got $8,000 in 1099-MISC income. So do I have to file North Carolina state individual income taxes since North Carolina requires nonresident to file  a state return (https://www.ncdor.gov/taxes-forms/individual-income-tax/nonresidents-and-part-year-residents) if their federal gross income exceeds $10K?

~ If I do, I assume I can get credit on my usual California state taxes by filing a Schedule S -- Other State Tax Credit Form (https://www.ftb.ca.gov/forms/2019/2019-540-s.pdf)  

~ I am using TurboTax Deluxe State disc desktop version, which includes a free download for one state (I chose California). I usually pay a fee of $24.99 to e-file my state tax returns for Calif.

My questions are: 

1. If I download an additional state forms (for North Carolina) TurboTax charges an extra $45 fee) plus the $25 e-filing to file the return. Instead, to save money, can I file directly via the North Carolina state tax website? (I might have to use the free Credit Karma software site).

2. If I do file North Carolina separately, outside of TurboTax, how do I to input that amount while doing my California taxes via TurboTax? Which forms do I need to use/record the amount on? Will TT require me attach the North Carolina state return -- and how would I do that?    

Thanks in advance for answering these questions! 

Sincerely,

Perplexed in San Diego

[Anonymous]

Nonresidents: If you were not a resident of North Carolina at any time during the tax year 2019 but you received income in 2019 from North Carolina sources that was (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina, (2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in North Carolina, and your total gross income from all sources both inside and outside of North Carolina equals or exceeds the amount in the Filing Requirements Chart for your filing status, you must file a 2019 North Carolina individual income tax return, Form D-400.

it appears NC does not tax telecommuters.  (those that work from home for companies located in a nonresident state)

read item 2) above  "carried on in NC".  since you say you had no physical presence in NC, i would conclude that you don't need to file a return for that state.   

[San Diego]

Thanks, I read that clause no. 2, but am worried about this interpretation of words highlighted below:
you received income in 2019 from North Carolina sources that was (2) derived from a business, trade, profession, or occupation carried on in North Carolina. 

[Hal_Al]

I agree with HACKITOFF,  your income was NOT  derived from a business, trade, profession, or occupation carried on in NC.  You do not need to file an NC return. 

[San Diego]

Thanks much!