The company I work remote for is in MN - worked there 2 years now.
For TY 2024, I lived in ND from 1/1/24 thru 8/15/24, then moved to NC for the rest of the year, and it's where I now permanently reside.
MN and ND have tax reciprocity, so in 2023 TY (as a full yr res of ND) I only filed a ND state tax return, no MN return.
For 2024, is my state of residency considered NC, due to the fact that I live there now, even though I spent a greater part of the year as a ND resident? Do I also have to file a MN tax return in TY 2024 because MN and NC do not have tax reciprocity? What order should I be preparing my state taxes - ND, NC, MN? Will I be double taxed anywhere, or will the credits for tax paid in other states work itself out in the end?
Our payroll people change my state tax withholding when I moved, so I had 7.5 months of ND withholding, and 4.5 months of NC withholding. ND is only 1%, where NC is closer to 7% state tax.
You'll need to sign in or create an account to connect with an expert.
You will file a Part-Year North Dakota and a Part-Year North Carolina income tax return. For each return, you will be able to allocate the state wages (it seems your company was on top of it so you may be able to use the amounts on your W2 for simplicity). There should be no double-tax because you only have to report the income from when you were a resident- but you will have to allocate other income (like interest etc. ) on the tax returns based on where you were resident when you received the income or you can use a percentage for the amounts based on days.
OK, Thanks you for clarifying. Do I have to file a MN State return also, because that is where the company I work for is based (and NC and MN don't have tax reciprocity)? How about the order I should create the state returns in? ND first, or doesn't it matter?
No, you will not have to file Minnesota because you did not work in the state. Because you are filing Part Year tax returns, the order does not matter- you should not have any double-taxed income. @Eidsvos
One last clarification, will my 'state of residency' in the profile be NC, because that is where I now live - even though for 2024 my majority state (7.5 months in ND) would have been ND. Will Turbo tax just be prorating 'tax owed by state' based on dates of residency that I will input, and that 'State of Residency' in the profile does not dictate where you spent the majority of 2024, it is where you live now?
Yes, the state of residency is based on December 31st so North Carlina is correct even though you lived there a shorter amount of time. When you get to each state section, it will ask you to allocate but it does have some pre-populated amounts- please post again if you have questions when you get there, we are glad to guide you! @Eidsvos
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
cloete-roy
New Member
rikki_southard
New Member
norlisha5
Level 1
er_1917
Level 1
Eidsvos
Level 2