We were residents of NC all year last year and are being asked to key in non-resident income.... why? Did we key in something incorrectly on Federal?

[SteamTrain · Accepted solution]

Check your Personal Info page...one or both of you indicated that you were a resident of some other state during 2016...either for the whole year..or NC on 31 Dec 2016, but had a "move" from another state during 2016

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IF you are Military, posted in NC, but with HOR of some other state, and both of you claim that other state as your domicile state...then having that other state set as your state of residence is correct.  Then doing a non-resident NC tax return would show up if one of you worked a civilian job while posted in NC and had NC-withholding.  Whether you should be filing NC Nonresident at all in this situation depends on which spouse worked that civilian job and whether any NC withholding was done on that NC W2.