Job positioned in GA while working remotely in NC

[NWX0]

Hi,

My job is positioned in GA (eg in the HR system, and withholding went to GA - I was supposed to relocate but haven’t due to the situation) but I live in NC. I know I may file non-resident for GA and claim 0 earnings for a full refund from GA and do NC filing as usual - do I have to prove to GA that I had to work remotely in another state so I should ask for a full refund (get all taxes withheld there) from GA or the filing will be processed right away to issue me the full refund?

Thanks a lot in advance.

[AnnetteB6]

Because your income is from a Georgia source, you are required to file your non-resident return for Georgia.  There is no way to know what may trigger an inquiry by the state, but there is also no reason to believe that it will automatically be flagged as an issue. 

Since your income is from a Georgia source, you may not get all of the withholdings back.  There may be some tax liability for Georgia.  However, if there is a tax liability for Georgia, you can claim a 'credit for taxes paid to another state' on your North Carolina return so that the income is not double-taxed by both states.

[NWX0]

Thank you @AnnetteB6 - “GA sourced income” was what puzzled me as technically I didn’t work there. It looks to me an “all or nothing” thing so have no idea on how to file partial of that in GA?

[AnnetteB6]

Let me apologize for the confusion. 

Your W-2 is reporting Georgia income and state withholdings as if you did actually work in Georgia.  If you had worked in Georgia for even part of the year, then the income would be reported from a Georgia source on your return and there would likely be some Georgia tax liability.  

As you go through your state returns, complete the Georgia return first.  As a non-resident, you will be asked to allocate all of your income items between Georgia and the other state.  Your W-2 income will be allocated completely to Georgia when you first go through the allocation because of the way your W-2 was reported.  Enter the W-2 wages shown for Georgia in the Other State column.  This will indicate that you did not work in Georgia and you should not have a tax liability to Georgia.  

Be sure that any other income you have entered on your return is also allocated to the Other State as you go through the Georgia allocations.  

Finally, be sure that the situation is corrected with your employer for 2021 if you continue to live and work in North Carolina.

@NWX0

[NWX0]

Thanks a lot @AnnetteB6- in this case, can I efile GA (probably have to efile federal together), wait until the refund is issued, and then efile NC?

[AnnetteB6]

Not necessarily.  You can electronically file all three returns at the same time. 

Even if you have a balance due on your North Carolina return because the state taxes were withheld for Georgia, you have until the tax due date to pay that balance due.  Hopefully the Georgia refund will be processed before that time, but you do not need to wait to file the North Carolina return.  

@NWX0