Part Year Resident Taxable Income

Forum|Forum|2 years ago
March 17, 2024
2 replies
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Hi i was a resident of North Carolina through 7/20/23 and then moved to Arkansas for the rest of the year.

i input the dates into turbo tax but when i look at the state forms it seems to be attributing all of my state taxable income to North Carolina, and nothing to Arkansas. Is that correct?

Best answer by SteamTrain

NC uses ALL your income for the initial calculations.

The ratio's down the NC "Taxable" income (after all the appropriate deductions are subtracted).

BUT, you need to go thru the entire NC Part-year Q&A to indicate what income is actually considered NC sourced income (i.e. every penny received/earned before you moved to Arkansas)....only then is the NC tax applied properly.

mglauner

That depends. If you earned income in both states and it is reported correctly on your W-2's, then TurboTax will report the North Carolina income on your NC return; same for Arkansas.

If the W-2's don't clearly allocate your income between the two states, when you go through each state interview in TurboTax, you can allocate the correct amount to each state. You will be shown the Federal amount, and asked how much belongs (or doesn't belong) to that state.

Here's more info on Allocating Income for a Part-Year Resident.