State taxes

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capen2468
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State taxes

Post by capen2468 »

In 2017 I finished working in NY and moved to N.C. All my employment income was in NY . I made about 10,000 in dividends and cap gains throughout the year . I filed my state tax return in N. Y for all my income that year? Was I supposed to file a N. C. tax return ? I moved in June 2017 . I got a letter from the state
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Re: State taxes

Post by jebmke »

The NC tax instruction booklet would tell you for sure but most states would require you to file a part-year resident return if you otherwise meet their filing thresholds (e.g. income).

In my state you would allocate income based on residency so, for example, if I became a resident on June 15 and my funds paid dividends on June 25th, those dividends would be allocated to my new state.
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grabiner
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Re: State taxes

Post by grabiner »

If you moved in June, you should have filed a part-year resident return in NY, and another one in NC. Income you earned while a NY resident, or with a source in NY is taxed by NY; income you earned while a NC resident, or with a source in NC, is taxed by NC. Income from intangible assets, such as dividends and capital gains, is sourced to your state of residence, so any dividends or capital gains received after you left NY is not taxable in NY and is taxable in NC.

In both states, you are required to file a tax form as a part-year resident if your total income meets the filing requirement, and you earned at least $1 while a resident (or from a source in the state while a nonresident). (You have to check this by state; this is the rule in most states, but some states have a minimum income taxable by the state.)

If you filed your 2017 NY form incorrectly but on time by April 15, 2018, it is now too late to file an amended return. But you are still liable for 2017 NC tax, as the statute of limitations for collecting tax does not begin until you file a return.
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twh
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Re: State taxes

Post by twh »

Some finer points, since I've been there before...

As said, you need to file Part-Year returns in both NY and NC.

Pay attention to the part-year calculation. Depending on the state, the method to determine length of residency may be different. For example, I left a state that counted the exact number of days you were a resident and went to a state that only counted the number of months. So, my return in the leaving state goes to the end of the month I left and starts the next month in the new state.

As for dividends and interest...to do it properly, you need to look at your 1099 detail and allocate it to the state you were in when that dividend or interest payment was received. For example, a lot of stuff pays out the end of December and that would all be in NC. Since NY is higher taxes than NC, this may be to your benefit anyway.

I believe NY and NC both have credits for income taxes paid to another state...that way you don't get double taxed if you were living in NC, but still employed by the NY employer.
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Re: State taxes

Post by jebmke »

^^ true, a year can be longer than 365 days for part-year returns (combined).
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grabiner
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Re: State taxes

Post by grabiner »

twh wrote: Wed Nov 17, 2021 12:51 am Some finer points, since I've been there before...

As said, you need to file Part-Year returns in both NY and NC.

Pay attention to the part-year calculation. Depending on the state, the method to determine length of residency may be different. For example, I left a state that counted the exact number of days you were a resident and went to a state that only counted the number of months. So, my return in the leaving state goes to the end of the month I left and starts the next month in the new state.
And check the output of your tax software carefully before you file; part-year state returns are especially prone to bugs. For example, in NJ, you must be a resident for 15 days during a month to get that month's share of the personal exemption. I moved to NJ on 11/16/10, and TaxAct incorrectly computed my residency as including only 14 days in November.
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capen2468
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State taxes

Post by capen2468 »

[Thread merged into here --admin LadyGeek]

I moved and retired to n.c. from New York on 6/25 in 2017 . When I filed my taxes I made a mistake and just filed them for the state of New York because that is where my earned income was from . Now n.c is coming after me because I did not pay the taxes to n.c because I was a full time resident in the state . If I have to pay all my taxes that year to n.c can I still get a credit from N.Y after almost 4 years ?
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Re: State taxes

Post by jebmke »

Did the responses to your November 16th post not address this? If not, for context I’d suggest asking specific questions ina reply on that thread.
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Re: State taxes

Post by Katietsu »

Let’s pause for a second. Just because NC has requested payment as if you were a full year resident does not make it so. Do you believe you changed your state residency in June 2017? Have you looked at the types of things that influence the state residency decision?
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capen2468
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Re: State taxes

Post by capen2468 »

If your in nc for 183 days your considered a full time resident I was in NC for 190 days . All my earned income was in NY . I had about 9500 in dividends also . I paid those taxes in NY . Can they tax me for all the dividends in NC since I was a full time resident ? Do I still get the standard deduction if they do ?
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Re: State taxes

Post by jebmke »

capen2468 wrote: Wed Nov 24, 2021 5:55 pm If your in nc for 183 days your considered a full time resident I was in NC for 190 days . All my earned income was in NY . I had about 9500 in dividends also . I paid those taxes in NY . Can they tax me for all the dividends in NC since I was a full time resident ? Do I still get the standard deduction if they do ?
The instructions from NC on filing a return explain this in detail.

https://www.ncdor.gov/media/11914/open
Last edited by jebmke on Wed Nov 24, 2021 6:04 pm, edited 1 time in total.
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fabdog
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Re: State taxes

Post by fabdog »

Perhaps this will help you. NC will tax you on all that income... then you can take a credit for the taxes you paid to NY on that income on your NC return
you don't ask for a credit from NY

https://www.ncdor.gov/taxes-forms/indiv ... or-country

As this seems to have you somewhat confused, it may be worth your while to consult an enrolled agent or CPA to handle the issue for you with the NC tax authorities. You'll need a copy of your 2017 NY state tax return as well as the correspondence from the NC DOR, as you (or your rep) will need to work with them to get to the correct figure for NC taxes owed for that year

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Re: State taxes

Post by MarkNYC »

jebmke wrote: Wed Nov 24, 2021 6:03 pm
capen2468 wrote: Wed Nov 24, 2021 5:55 pm If your in nc for 183 days your considered a full time resident I was in NC for 190 days . All my earned income was in NY . I had about 9500 in dividends also . I paid those taxes in NY . Can they tax me for all the dividends in NC since I was a full time resident ? Do I still get the standard deduction if they do ?
The instructions from NC on filing a return explain this in detail.

https://www.ncdor.gov/media/11914/open
NC presumes the OP was a full-year resident. The OP should provide NC with evidence that he moved into NC during the year, making him a part-year resident for that year. As a part-year resident, NC tax will only apply to income earned during the residency period (assuming no NC-source income while living in NY). Part-year residency for NC is explained on page 5 of the NC filing instructions provided by @jebmke in the link above.
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Re: State taxes

Post by Katietsu »

capen2468 wrote: Wed Nov 24, 2021 5:55 pm If your in nc for 183 days your considered a full time resident I was in NC for 190 days . All my earned income was in NY . I had about 9500 in dividends also . I paid those taxes in NY . Can they tax me for all the dividends in NC since I was a full time resident ? Do I still get the standard deduction if they do ?
Please see MarkNYC. The 183 days does NOT apply to a part year resident that has permanently left the state. An example of the 183 day criteria might be someone who spends 7 months a year in NC but has a FL condo that they spend the rest of the time at.

You could have moved on December 15 and still been a part year resident of NC and a part year resident of NY. It does sound like you might want to get professional advice since it seems like you were about to send NC a fair amount of money that you do not owe them.
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Re: State taxes

Post by LadyGeek »

capen2468 - In order to provide appropriate advice, it's best to keep all the information in one spot. I merged your update back into the original thread. If you have any questions, ask them here.
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