Question

Retired, only income is SS and pension, split my time equally between AZ and NC. Do I need to file state return for both states?

Forum|Forum|2 years ago
March 26, 2024
1 reply
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We own a home in both AZ and NC, and have registered cars in both locations. Our time is split equally between the two and only have SS and pension income which is all deposited in NC. Do I need to file a return in both states? We also just put solar on our home in AZ, which of course gives a Federal tax credit, AZ also provides a credit but we currently do not file an AZ return so can't claim the credit. Or can we? I'm pretty sure we are only required to file in NC as that is where we vote and maintain our driver's licenses. My understanding the state credit for solar can be carried over for 5 years. So if we want the credit we would need to change our primary residence to AZ. Am I correct in my thinking? Thank you

DMarkM1

AZ takes into account the whole of your intentions to be domiciled in another state. So bank accounts, home ownership, car registration, voter registration, driver's license, where you spend your time all would come into play if the issue ever came up.

In the meantime you are domiciled in NC and consider that your resident state so all income will be taxed there. Since there is no AZ source income as a nonresident you do not need to file in AZ.

The AZ solar credit is nonrefundable. So there would be no advantage to filing and claiming that credit since all that can happen is to zero your AZ tax.

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