multi state 2024 resident who also worked fulltime remote

Forum|Forum|1 year ago
April 9, 2025
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The company I work remote for is in MN - worked there 2 years now.

For TY 2024, I lived in ND from 1/1/24 thru 8/15/24, then moved to NC for the rest of the year, and it's where I now permanently reside.

MN and ND have tax reciprocity, so in 2023 TY (as a full yr res of ND) I only filed a ND state tax return, no MN return.

For 2024, is my state of residency considered NC, due to the fact that I live there now, even though I spent a greater part of the year as a ND resident? Do I also have to file a MN tax return in TY 2024 because MN and NC do not have tax reciprocity? What order should I be preparing my state taxes - ND, NC, MN? Will I be double taxed anywhere, or will the credits for tax paid in other states work itself out in the end?

Our payroll people change my state tax withholding when I moved, so I had 7.5 months of ND withholding, and 4.5 months of NC withholding. ND is only 1%, where NC is closer to 7% state tax.

Ask the Experts - Tax Due - April 2025

MAK70

You will file a Part-Year North Dakota and a Part-Year North Carolina income tax return. For each return, you will be able to allocate the state wages (it seems your company was on top of it so you may be able to use the amounts on your W2 for simplicity). There should be no double-tax because you only have to report the income from when you were a resident- but you will have to allocate other income (like interest etc. ) on the tax returns based on where you were resident when you received the income or you can use a percentage for the amounts based on days.

EidsvosAuthor

OK, Thanks you for clarifying. Do I have to file a MN State return also, because that is where the company I work for is based (and NC and MN don't have tax reciprocity)? How about the order I should create the state returns in? ND first, or doesn't it matter?

MAK70

No, you will not have to file Minnesota because you did not work in the state. Because you are filing Part Year tax returns, the order does not matter- you should not have any double-taxed income. @Eidsvos