Question

Wages Allocation between states.

Forum|Forum|1 year ago
February 2, 2025
2 replies
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During the first half of the year, I worked in North Carolina and lived in South Carolina. The second half, I moved to the state I work in. When filling out the Wages Allocation page, the first box was automatically filled in with my total income. When filling out the page, do I leave that box filled or do I clear it as I fill out the other boxes allocation which income was earned while living out of state vs in state?

TurboTax Basic Windows

Hal_Al

For more specific advise, please identify the two states.

That said, the usual rule is that the state you moved to and worked in all year will tax all your wage income and probably not separate which income was earned while living out of state vs in state.

S

ShayneNCAuthor

Worked in North Carolina all year. Lived in South Carolina the first few months, then moved to NC and ended the year there.

J

JamesG1

The screen Part-Year and Nonresident Income in the North Carolina state income tax return states:

You will need to enter amounts for the income earned while a North Carolina resident, including North Carolina source income you earned while a nonresident.

North Carolina will tax the income earned while you were a nonresident and the income earned while you were a resident.

South Carolina has a claim on the income earned while you were a resident of South Carolina. Income taxed by South Carolina may qualify you for a North Carolina credit if you paid income tax on income that was taxed by, both North Carolina and South Carolina.

In the North Carolina income tax return, at the screen Other State or County Tax Credit, select Yes. Report the amount of income and tax.

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LenaH

Yes, erase the data that is prepopulated in those boxes. You have to separate the amount of income earned in North Carolina while you were a resident of South Carolina and the amount of income you earned in North Carolina while a resident of North Carolina.

As an example, if I earned $50,000 total in North Carolina and moved to the state after living in South Carolina for three months, then I would allocate 3 months of income as a Nonresident of North Carolina (with NC source income) and 9 months of North Carolina Resident Income. Since you earned your full wage in North Carolina, don't choose Not NC source income for either of your entries.

Please see the screenshot below for additional clarification.

@ShayneNC

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G

ggss1

I am trying to do this step on this page in the Mac version of TurboTax Desktop Deluxe. We moved from Virginia to NC halfway through the year. The Virginia state wage allocation is easy to separate, with fillable boxes. On this page for NC wage allocation, the fields appear the same as your screenshot above, but they cannot be edited. There is line of blank fields at the bottom that also cannot be edited.

I need to be able to adjust one of the W-2 incomes to split it 1/2 and 1/2 between PY NC resident income and non-NC source income.

Do you know how I can do that?

B

BrittanyS

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

@ggss1

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