State Income Tax? So confused. (refund, post office, paycheck)

[kadams2345]

I moved to NC from TN where there is no state income tax. I'm so confused how this works. I moved to NC in August and started working in August. I contributed $688 of my 2007 wages toward state income tax.

Do I have to file the state income tax just like the federal income tax? Or is this a tax taken out of each paycheck and there is no end-of-the year filing?

Please help!

[SunnyKayak]

FAQ Frequently Asked Questions - Individual Income Tax

main site

Information for Individuals

you will need to fill out the federal income tax first as the state form will ask you to submit lines from that form
I use turbo tax online and it walks you thru everything. Last year it gave me free filing of the Federal and state was 15 dollars amount of my state refund was 2 dollars.

[kare893969]

hello, yes you have to file a state tax return here. Usually with a state return you break even and therefore do not get a refund. You can probably pick up a tax book at the library and or post office. I use TurboTax® Tax Preparation Software, FREE Tax Filing, eFile Taxes, Income Tax Returns and the program calculates it all out even if you worked in another state. They do charge you 10 or 20.00 to do the state taxes for you. Hope this helps. NC has a high state tax rate, I think I read it can range from 6 to 8.5 %. Where I came from it was only 3%.