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Level 1
posted Feb 14, 2021 7:57:54 AM

State Filing

We purchased our home in SC in late 2019 and at that time it became our primary residence.  However, we still owned our previous home in NC until it sold in June of 2020.  We traveled back and forth getting our house in NC ready to put on the market.  We did not submit all our changes of address until sometime in 2020.  We have received  pension 1099-Rs from two pensions that each split the distributions between the two states.  Does that mean we have to file state taxes in both SC and NC?

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1 Replies
Expert Alumni
Feb 14, 2021 8:31:50 AM

If NC tax was withheld from either of the Form 1099-R payments, then you might want to file a NC non-resident return to get a refund of taxes withheld - it will depend on how much tax was withheld and whether you want a refund.

 

You were a resident of SC for the entire year, so none of your retirement income was taxable by NC.

 

Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state.