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New Member
posted May 6, 2025 1:46:13 PM

Turbo tax is saying I owe North Carolina money, but I was only here for 3 months.

I moved from Texas to North Carolina in October of 2024. I didn't start working until mid-November. Do I owe North Carolina federal taxes?

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1 Replies
Level 15
May 6, 2025 4:17:22 PM

@dhayles62 

 

1)  You don't owe NC "Federal" taxes....you might owe NC "NC State" taxes......depending on how much income you made for the year.

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2) You need to file an NC Part-Year tax return.......in the Personal Info/My Info section of the tax preparation, you need to indicate you were an NC resident at the end of 2024, and then indicate you moved From TX.  That will initiate the NC Part-Year tax return.

 

3) you need to fully fill in all of the Federal tax area, with ALL of your sources of income for the entire year.  Once that is done and error checked......

 

4)  You start the NC part-year tax return.  NC uses ALL your yearly income to calculate a total taxable income..(which, at first, seems wrong) BUT...the software will then lead you thru a bunch of questions where you will indicate/allocate what sub-part of your total yearly income was actually earned and received while living/working in NC.  That allocation of income part will chop down your total yearly income, to the actual NC-related income.....and then apply the NC tax to that chopped down NC-Income.   Whether any NC taxes are actually due will be determined that way.    Any interest, capital gains, and dividends you received after moving to NC must be included in your NC allocations.

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I haven't done an NC part-year allocation myself recently...but a couple of the allocation pages used to look something like this:

 

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