You'll need to sign in or create an account to connect with an expert.
You would report that income on both returns. First you will file the VA non resident return, then you will claim a credit for taxes paid to VA on your NC return.
In general, your home state will tax all in come from all sources. What you will do is you will file a nonresident return for the states that you do not reside in, but you visit for work and earn money in. When you file, you will fille out your nonresident states first. Then you will fill out your resident state, claiming a credit for taxes paid to the nonresident states on your home state return. You may or may not still end up owing money to your resident state depending on whether or not their tax rate is higher or lower than your nonresident state. If the non resident state had a higher tax rate than your resident state, your credit will be limited to the amount of tax you would have paid to your resident state. They will not give you a refund of the taxes you paid to the nonresident state.
File Non Resident State Return
Did you do your consulting work remotely from NC, or physically in VA? Income you earn by work physically performed in VA is taxable by VA, and would require you to file a non-resident VA tax return in addition to your home state NC return, as described by @Vanessa A . In that situation NC would credit you for taxes paid to VA, so you wouldn't be double taxed. But if you never physically worked within VA, then you would have no tax obligation to VA.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
lorsydorts
New Member
danecshroyer
New Member
eduard4us
New Member
MTNBKR
New Member
The Old Coach
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.