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Old 01-26-2011, 01:52 PM
 
Location: Sylva, NC
267 posts, read 713,427 times
Reputation: 217

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Little confused. First time filing taxes in NC. When calculating using online software or TurboTax, my "state" refund goes way down when adding my w2 from the one month I lived and worked in another state prior to moving here.

Should my income in Florida for January effect my state income tax and refund? Not sure how that works...
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Old 01-26-2011, 02:02 PM
 
3,071 posts, read 7,818,592 times
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You have to pay taxes on income earned out of state as an NC citizen. Your return could've went down b/c the additonal pay moved you to a differnt tax bracket. If you made a measurable sum of money in that month t could just go down due to the taxes you didn't pay on that money during the year.
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Old 01-26-2011, 02:36 PM
 
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If I understand you correctly, you earned the out-of-state money before you moved here? If you didn't live here, you don't need to report the income on your NC tax return.
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Old 01-26-2011, 02:38 PM
 
Location: Sylva, NC
267 posts, read 713,427 times
Reputation: 217
I think maybe I was vague about what happened....

We lived in FL for years, up until January 31st, 2010. During that time, money was earned as a Florida resident. On January 31st, we packed up and moved to NC, where a new job was started the first week of Feb. That job is my current job.

When I input the W2 into TurboTax (and also an online free tax efile) from my current job, I get a specific federal and state refund number. After then entering my Florida W2, that only consisted of one months' income, both the federal (which I might understand) and the state refund is nearly halved.

What I'm confused about, is why the NC state refund is effected by money I earned while a resident of FL for one month?

EDIT: I didn't think I would have to report it on my state file, but TurboTax and the online thingy do it all in the back ground. Do you think they are unable to separate it?
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Old 01-26-2011, 02:54 PM
 
2,648 posts, read 6,084,360 times
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You need to file a state return in Florida for the one month's earnings, then another state return in NC for the remainder of the year. You should not include the Florida earnings on your NC return. I don't know how Turbotax handles this situation. In fact, if I recall correctly Fla has no state income tax, right? In that case you obviously wouldn't need to file in FL.

The reason your refund goes down when you include the FL money is because the software thinks you earned it in NC. Thus it's added to your taxable income, but there was no withholding to offset it.
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Old 01-26-2011, 03:25 PM
 
Location: Sylva, NC
267 posts, read 713,427 times
Reputation: 217
Yeah, there is no state tax in Florida. Going back through turbo tax but can't find any way to separate FL from NC. Must be missing something...
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Old 01-27-2011, 06:45 AM
 
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Okay, after thinking about it a bit more, I think perhaps you're being thrown off by the way TurboTax handles Fed vs. State. Typically you enter your federal information first (including the W-2 earnings from both FL and NC). When you're ready to do the state (NC) return, the software automatically imports the federal earnings number, which includes FL and NC. Somewhere along the line the software should ask if you have any adjustments to the NC income. At this point you would back out the FL earnings so you report to NC only the income received while living here.

One caveat: I don't use TurboTax, so I can't help you with specifically how to do this in TT, but I know there has to be some way to "manually" adjust your NC reported earnings to back out the FL income.
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Old 01-27-2011, 07:17 PM
 
Location: North Carolina
28 posts, read 52,259 times
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Me thinks you may want to consider consulting a CPA on this.
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Old 01-28-2011, 07:12 AM
 
2,648 posts, read 6,084,360 times
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Quote:
Originally Posted by ProudNCDad View Post
Me thinks you may want to consider consulting a CPA on this.
Could be, but if it's as simple as described there's no need for the expense of a CPA. The OP merely needs to go the NC state return, reduce the W-2 income by the amount of the FL earnings, and he's done.

There may be complications that would warrant engaging a CPA (for example, if your date of residency is unclear for some reason). But if he indeed established residency here after he received the FL wages, it's a simple case of excluding that income from the NC return.
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Old 01-29-2011, 11:53 AM
 
Location: Raleigh, NC
10,401 posts, read 19,414,647 times
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If the tax program won't delineate the income for different states, maybe you will have to do the state form manually, only counting NC income? That one is a lot easier than the federal, isn't it?
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