Question

I moved to NC in December of 2020. My wife and I had $0 in NC income. Do we still have to file NC taxes?

Forum|Forum|5 years ago
April 15, 2021
1 reply
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She works from home, but the company is based in GA (where we lived the first 11 months). Do we need to file NC for 2020 and do we have to file going forward for NC?

TurboTax Self Employed Online

DMarkM1

For tax year 2020 you will be filing a part-year resident return for GA with 11mos of income and a part-year NC resident return for 1 month of income. Divide your income by 12 and then multiply the result by 11 to get the GA resident income. The remainder belongs to NC.

In the "MY Info" section you will indicate NC as your resident state on 31 Dec and that you lived in another state (GA) and enter the date you moved to NC. This will generate the PY returns for each state.

Enter your federal information and then work your GA return first. You will be able to allocate the correct income to GA in the interview.

Then work the NC interview for the remaining income.

Going forward NC is your new resident state and you will only need to file there. You should have your employers only withhold state taxes for NC.

For tax year 2021, if you already have taxes withheld by GA you will file a non-resident return with GA to get those taxes back. Next year in the "My info" section you will scroll down to the "Other State Income" topic and select "Yes" and pick GA. That will generate a non-resident return for GA.

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C

comictommyAuthor

But the business that my wife works at is in GA. It is not in NC. We only reside here. Does that matter? My wife's employer said that her Nexus is Atlanta, GA so she will only have taxes pulled from GA.

DanielV01

Employee

Not even businesses always understand the Nexus rules. Even though Georgia is the home of the business, as a state, Georgia does not tax telecommuters who are working "inside" of the state remotely from another state. If the company takes out Georgia tax in 2021, and you don't move back to Georgia, then at the end of the year it will be necessary to file a Georgia tax return with $0 to have any Georgia tax refunded back to you.

There are states that treats a telecommuter working remotely from outside their state, but for a company within the state, to be working inside of the state also. But Georgia is not one of those.

This year you will need to determine how much of the income was earned once you moved to North Carolina, which could take some math. But the result is the same: claim the amount actually earned in Georgia to Georgia and the amount actually earned while in North Carolina to North Carolina. Any overpayment of tax will be refunded, underpayments will mean you owe that much to the state.

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