Part time resident status

Forum|Forum|4 years ago
April 15, 2022
3 replies
12 views

I am doing taxes for my parents who lived in CA for the first 3 months of the year and North Carolina for the remaining 9. For the NC state taxes, I split up the amounts earned in NC for the 9 months. The next screen asks for how much of their social security was paid or incurred as a result of income reported in NC.

I am confused on this-do I again put the portion that was earned during their time in NC? 12,114 out of $16,152. It then taxes them a bunch of money. Doesn't seem right.

Also, they are taxing them on depreciation of a sewer line of a rental they own in CA.

ErnieS0

Level 15

North Carolina allows a subtraction for Social Security benefits taxed on your federal return.

Enter the amount of Social Security your parents received while living in NC on the screen Part-Year Resident Income Allocations.

Enter the same amount as a subtraction on the next screen under SS/RRB Benefits. This will subtract the amount. The NC refund/tax due box should change when you do this.

Rental income from California is taxed by NC. North Carolina part-year residents pay tax on income earned everywhere while a resident.

Enter the amount of rental income received while living in NC in the column North Carolina Income While a Nonresident.

You can claim a credit for tax paid to California on that income.

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terimac4Author

Level 5

On the income allocations, what goes under NC resident income vs income while non resident. My parents lived in NC 9 months and CA 3 months.

They receive interest, pensions, and social security, plus the rental income. I was splitting up the interest, pension, and SS by months and allocating 9 months in the left column.

terimac4Author

Level 5

Also, on page with SS/RRB if total SS was $16,152 and I calculated $12,114 was earned while living in NC, do I put the balance in NC adjustments while non resident?

my parents never have to pay state tax in California so it’s confusing to see they are owing in NC