What should be my tax residency in NC if I was away for summer in another state and earned income there?

[atlasthere]

My spouse studies at an NC University. She was present in NC from the start of the year till 05/29/2022, and again from 08/29/2022 till the end of the year. In the summer, she moved to WA and earned income from employment there.

NC's part-year residency definition - You are a “part-year resident” if you moved to N.C. and became a resident during the tax year, or you moved out of N.C. and became a resident of another state during the tax year.

What should be her NC tax residency for 2022? Would she require to pay taxes in NC for the income she earned in WA?

[ee-ea]

A North Carolina Resident is an individual who is domiciled in North Carolina at any time during the tax year. If you resided in the state for more than 183 days in the state during the tax year, you will be considered a resident. 

A Nonresident of North Carolina is an individual that was not domiciled nor maintained a permanent place of abode in North Carolina during the tax year. 

A Part-Year Resident is an individual moved into or out of North Carolina during the tax year.

[SteamTrain · Accepted solution]

Thousands of people/students head off to another state to work during the summer.  National parks, beaches, amusement parks, internships...etc.  They don't become residents of that other state because they don't intend to stay there to become permanent residents of that other state...and they don't do the things that show they are truly changing their domicile...like change their Driver's License, register to vote, re-register their car...etc.

As such, for the situation you describe she was working as a non-resident in WA, and all her income there would be NC taxable  (Assuming you were both NC residents to begin with).

When a person works the summer in another state that has an income tax, and their income is taxed there, then the NC tax return would still include and calculate a tax on that income, but, NC would then allow a credit to be applied for the taxes paid to that other state....unfortunately, WA does not have an income tax...so no credit in this case.

[atlasthere]

Thank you for your detailed reply with examples. Appreciate it.