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non-resident state-income-tax turbotax north-carolina joint-tax-return

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March 26, 2025 Score: 3 Rep: 17,764 Quality: Expert Completeness: 50%

None of my income is from a source in NC and I've paid state tax in my own residency state, so my portion of our income should effectively NOT be taxed for NC state tax? But how to file it that way?

According to NC tax return instructions, NC-401, page 5 as well as 12, if an NC resident, and an NC nonresident who had no NC income, file as Married Filing Jointly for federal, they can choose to file as either Married Filing Jointly or Married Filing Separately for NC.

If filing jointly, the NC tax return form NC-400 has separate checkboxes for whether each spouse is a full-year resident. If not both are full-year residents, then you would attach NC-400 Schedule PN to split out which of the joint income is NC-taxable.

If filing separately, your would file as NC resident with only her income, and you wouldn't have to file an NC return. Your spouse would need to attach how her federal tax return would have looked if she had filed separately for federal.

March 25, 2025 Score: 3 Rep: 194,027 Quality: Low Completeness: 10%

a technique of filing federal tax jointly but state tax separately for each of us by using a "mock married filing separate" preparation first. It seems quite complicated. Is this the right approach?

In short - yes. I've left a comment with a bunch of other things to consider, but I'd suggest talking to a licensed tax professional (EA/CPA).