My husband started working in North Carolina in September of this year, I still live in our New York house with our children. He gets NC taxes taken out, how do we file?

[spullman3]

My husband lives in North Carolina for work since September. He flies home to New York once a month to visit me and our kids who still live in New York.  His paycheck takes out NC income tax but we have our house in New York. How do we file our state income tax?

[ToddL · Accepted solution]

If your husband's move to NC is not permanent, you are both still residents of New York. You will have to file a NC non-resident tax return and pay NC tax on his NC income. New York will also tax his NC income, but  they will give you a credit (against your New York tax) for the tax you pay to NC.

In the Personal Interview, both of you should enter New York as your resident state.  Where asked if you lived in any other states indicate NO.  Where asked if you earned any money in any other states indicate YES, since he is working in NC.

Also make sure you prepare the NC non-resident state tax return first, before doing the New York return. That way the program will know how much NC tax you paid so it can calculate your New York credit.