W2 Address Change

Forum|Forum|3 years ago
March 12, 2023
1 reply
17 views

Doing my daughter's taxes. She moved from PA to NC in December 2021. She told her employer to change her address to NC, but they did not get it changed until after her first paycheck. Now she has both PA and NC state taxes on her W2, but she lived in NC for all of 2022. How do I handle this? Do I need to file a return in both states?

PattiF

Level 15

Yes, she will have to file in two states. She will file as a non-resident for Pennsylvania to claim a refund of the state taxes that were withheld. And then file a return as a resident for North Carolina.

Here is a TurboTax Help article about filing as a non-resident.

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GauchoOwlDadAuthor

Level 2

Thank you.

So when I file the NC return, am I including the combined Gross Income of the 2 states and then paying what should have gone to NC for that 1 paycheck?

ErnieS0

Level 15

North Carolina starts with federal income but allows part-year residents to only report the amount they made while living and working in NC.

Your daughter won’t claim a credit for double-tax income on the NC return because she is filing a non-resident return to get back all her PA withholding.

On the Wages Allocation screen, enter the amount of income earned in PA as Not NC Source Income. This will be subtracted.