Moved from CT to NC during the year, income only from NC for entire year

[Taxes_Question]

From 01/01 to mid February I was resident of CT with income from NC employer only.

Mid February I moved to NC (no more residency in CT) with income from same NC employer for the rest of the year.

Do I file state taxes for CT and NC, both as a part-year resident?

Do I also have to file as non-resident for any part of the year for any of those 2 states?

Do I manually allocate wages received while living in CT to CT tax return and deduct these wages from the total on the W2 for the NC return?

Thanks!

[TomK2023]

You probably do not need to file a CT resident tax return nor a CT non-resident/part-year resident tax return.  

You must file a Connecticut resident income tax return if you were a resident for the entire year and any of the following is true for the 2022 taxable year:

• You had Connecticut income tax withheld;
• You made estimated tax payments to Connecticut or a payment with Form CT‑1040 EXT;
• You had a PE Tax Credit;
• You meet the Gross Income Test;
• You had a federal alternative minimum tax liability; or
• You are claiming the Connecticut earned income tax credit (CT EITC).

If none of the above apply, do not file a Connecticut resident income tax return. 

You must file Form CT‑1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return, if you were a nonresident or part‑year resident of Connecticut in 2022 and any of the following is true for the 2022 taxable year:

• You had Connecticut income tax withheld;
• You made estimated tax payments to Connecticut or made a payment with Form CT‑1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals;
• You had a PE Tax Credit and your PE did not elect to remit composite income tax payments on your behalf;
• You were a part‑year resident who meets the Gross Income Test or who had a federal alternative minimum tax liability; or
• You were a nonresident with Connecticut-sourced income who meets the Gross Income Test or had a federal alternative minimum tax liability. See Connecticut-Sourced Income of a Nonresident.

If none of the above apply, do not file Form CT‑1040NR/PY. 

Connecticut State Department of Revenue Services

You will need to file A NC Individual Income Tax Return;.

The following individuals are required to file a 2022 North Carolina individual income tax return:

• Every resident of North Carolina whose gross income for the taxable year exceeds the amount shown in the Filing Requirements Chart for Tax Year 2022 for the individual's filing status.
• Every part-year resident who received income while a resident of North Carolina or who received income while a nonresident that was (1) attributable to the ownership of any interest in real or tangible personal property in North Carolina, or (2) derived from a business, trade, profession, or occupation carried on in North Carolina, or (3) derived from gambling activities in North Carolina and whose total gross income for the taxable year exceeds the amount shown in the Filing Requirements Chart for Tax Year 2022.

North Carolina Department of Revenue

You should enter all of your W-2 wages on your NC tax return.

[Taxes_Question]

Thank you for your answer. Just to make sure I understand you correctly:

Since my total yearly gross income is over the $15,000 I would have to file CT part year resident, correct?

And as wages I would enter the wages received from NC employer during the first 6 weeks of the year (until the move), correct?

And for the NC state return I would have to enter the total yearly salary, even though I have to enter part of it again for the CT state taxes?

[Eliut]

As Tom explained, you will need to file in Connecticut if you have tax withheld from that state. One simple way of knowing if needing to file part resident is to find out if there is CT tax withheld in any of your W2 forms. 

[Taxes_Question]

Thanks for your reply. No taxes withheld from CT, but doesn't this apply? "You were a part‑year resident who meets the Gross Income Test". Gross income test is gross income over the entire year? Or just for the few weeks I lived in CT?

[Eliut]

Please be aware that I am not CPA, but here is my interpretation of the “Connecticut Nonresident and Part-Year Resident Income Tax Information” obtained from the portal.ct.gov website states:

1. Under “Who Must File Form CT-1040NR/PY” instructions you qualify as “You were a part-year resident who meets the Gross Income Test or who had a federal alternative minimum tax liability”.
2. Gross Income Test

You must file a Connecticut income tax return if your gross income for the 2022 taxable year exceeds:

• $12,000 and you are married filing separately;
• $15,000 and you are filing single;
• $19,000 and you are filing head of household; or
• $24,000 and you are married filing jointly or qualifying surviving spouse.

3. Connecticut‑sourced income of a part-year resident is the sum of:

• Connecticut adjusted gross income for the part of the year you were a resident;
• Income derived from or connected with Connecticut sources for the part of the year you were a nonresident; and
• Special accruals.

Here is my interpretation to determine if Form CT-1040NR/PY must be filed:

1. Item 3 above states “the gross income for the part of the year you were a resident” of CT.
2. You lived in CT from January 1st to Mid-February.
3. Calculate the amount of gross income you received from January 1st to Mid-February.
4. If the amount of the gross income for the part of the year you lived in CT is equal to or greater than the amount of your filing status in the Gross Income Test above, then you need to file form CT-1040NR/PY otherwise you do not need to file the form. 

[Cynthiad66]

Gross Income Test for 2022 (whole year)

You must file a Connecticut income tax return if your gross income for the 2022 taxable year exceeds:

• $12,000 and you are married filing separately;
• $15,000 and you are filing single;
• $19,000 and you are filing head of household; or
• $24,000 and you are married filing jointly or qualifying surviving spouse.

The following example explain the gross income test for a Connecticut resident:

Example 1: A nonresident whose only income is from a sole proprietorship located in Connecticut files a federal Form 1040 and reports the following on Schedule C:

Gross Income  $100,000

Expenses ($92,000)

 Net Income  $8,000

Because the gross income of $100,000 exceeds the minimum requirement and the income is from a Connecticut Source, this nonresident must file a Form CT-1040NR/PY.

Connecticut Gross Income Test