Mid Year Home of Record change VA to NC

You can file a North Carolina resident tax return and report all your active duty pay.  For Virginia, because you changed residency, you can use Form 763-S to request a refund of the tax withholding and this will let them know your official switch date. Be sure to complete the questionnaire on the back of the form, and attach the documents requested, including your W-2(s).

(The Form 763-S is not in TurboTax, you can use the link to get it from the Virginia Department of Revenue and mail it in.)

@jaderbee2   I don't agree with @MAK70 

Assuming a proper DD Form 2058 was Filed and accepted by your Military Personnel department, you would file part year tax returns for VA and NC.  

In the My Info section of the software, you would indicate that each of you were a resident of NC at the end of 2021, and that you "moved" from VA effective the date the DD 2058 was filed and accepted.  (sometime in March/April).  When you do each state part-year tax return, all income (wages, interest, dividends etc) before your "move" is VA income and all income after the "move" is NC income.  (yeah, you probably didn't move, but tax wise, you were a VA resident until the DD2058 became effective)

The Federal section first has to be entirely filled out with everything first, because the state parts work off of that.    Not sure how the VA Part-year works, but the NC part-year first uses yoru total Federal income to start, but as you work thru the NC interview, you are presented with pages to "allocate" what sub-part of the federal income was actually NC income.....that's the place you cut down your total income to what sub-part is really NC taxable.