Question

Move from TX to NC and Not Paying NC State Tax on Texas Earnings

Forum|Forum|4 years ago
April 15, 2022
1 reply
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At the end of July 2021, I moved from Texas to North Carolina. Texas has no state income tax, so I had earnings and withdrew funds from my IRA while I was still in Texas. I have entered my profile information correctly including the move date, but I understand that the NC state tax return is going to try to state tax my Texas income. Since TX has no state tax return, how can I get the TurboTax system to only count the NC income in the NC state return?

TurboTax Home & Biz Windows

B

BillM223

In the North Carolina interview, you will confirm that you moved to NC during the year (NC will prepare a part-year return for you). Progress through the interview, and you will eventually see a screen titled "Part-Year and Nonresident Income".

Over the next several screens, you will have the opportunity to indicate which income you earned while living in NC and which income is NC source income (the IRA distribution won't be NC source income).

Pay attention to the questions in this section - this is how you get NC to tax you only on NC income.

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