Residence status

Forum|Forum|2 years ago
October 14, 2023
3 replies
0 views

Hello -

We lived in NJ from Jan - August (8 months) then moved out of the country for the remaining 4 months. We earned some income during these 4 months as well.

However, we changed our address (with banks, etc.) to a family members place in NC for those 4 months.

1. Do we need to file both a resident and non-resident NJ return?

2. Should we file NC at all since we never lived there - it was essentially a mailing address (however some of our tax forms now have NC listed as the state). If yes, should we file as non-resident?

3. When turbotax asks if we live abroad, is the answer yes since we were abroad end of year?

Thanks!

Not A Product Question

Best answer by NCPERSON1

@aa2014 you did not physically live in NC nor did you earn any money sourced from NC, so I don't see that filing an NC tax return is necessary

for example, if you had an income producing property in NC, then you would have NC sourced income.

Just using an address in NC doesn't somehow cause your income to become 'sourced' in NC.

https://www.ncdor.gov/taxes-forms/individual-income-tax/nonresidents-and-part-year-residents

A

Anonymous_

Employee

Perhaps @NCPERSON1 can answer this question.

N

NCPERSON1Answer

@aa2014 you did not physically live in NC nor did you earn any money sourced from NC, so I don't see that filing an NC tax return is necessary

for example, if you had an income producing property in NC, then you would have NC sourced income.

Just using an address in NC doesn't somehow cause your income to become 'sourced' in NC.

https://www.ncdor.gov/taxes-forms/individual-income-tax/nonresidents-and-part-year-residents

A

aa2014Author

Employee

@NCPERSON1

Unfortunately, a small portion of my W2 wages got attributed to NC in my W2 (though nothing was withheld).

Does this mean I will need to file NC? Otherwise they might need an explanation as to why I'm not paying them anything even though my employer attributed some wages to them?

T

TomD8

Employee

With regard to NJ:

Was your move to another country temporary, followed by a return to your NJ home? Or did you actually move from NJ to the other country and make the new country your new main, primary home (your new domicile, in tax terminology)?

Your NJ tax filing status will depend on which of these circumstances applies.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

A

aa2014Author

Employee

@TomD8

We moved out of NJ permanently by selling our home as well.

T

TomD8

Employee

@aa2014 --

Then you are a part-year resident of NJ. If you continued to have NJ-source income after your relocation, then (as you suspected) you must file both a part-year resident and a non-resident NJ return. See page 5 of this NJ tax publication:

https://www.nj.gov/treasury/taxation/pdf/pubs/tgi-ee/git6.pdf

The publication also provides detailed filing instructions for your situation.

In the Personal Info section of TT, enter your State of Residence as "Foreign or U.S. Possession". It's the last choice in the State of Residence drop-down list. Your State of Residence for tax purposes is your State of Residence as of year's end.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.