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NC resident moved to NM

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    NC resident moved to NM

    I have a client that moved from NC to NM 1/22/2007. How would you classify their residency?

    (1) NC Nonresident--NM Full resident

    (2) Part Year residents for both

    (3) Another suggestion

    Seems 22 days would make you a non-resident but I'm not sure. Comments, please.

    Thanks.

    Peachie

    #2
    Part Year both, perhaps not having to file in State One because of too little income?
    See how each state wants you to enter the part year info. Some states have you do it by the actual dates, some by the number of full months in the state.
    JG

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      #3
      I had to file

      Originally posted by JG EA View Post
      Part Year both, perhaps not having to file in State One because of too little income?
      See how each state wants you to enter the part year info. Some states have you do it by the actual dates, some by the number of full months in the state.
      State One because she had tax withheld. I am showing State One as Nonresident and State Two as Resident because of so little time in NC. She gets a refund from State One with a credit to State Two. She owes State Two a small balance due.

      I will see how it works out using your suggestion JG. Thanks.

      Peachie

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        #4
        NC taxes based on aloocation the income actually earned in the state without regard to dates of residence. So if the W-2 is correct, NC won't be a problem. The only time I run into an issue is when the employer's payroll department messes up the NC earnings on the W-2
        "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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          #5
          Interestingly enough

          Originally posted by JohnH View Post
          NC taxes based on aloocation the income actually earned in the state without regard to dates of residence. So if the W-2 is correct, NC won't be a problem. The only time I run into an issue is when the employer's payroll department messes up the NC earnings on the W-2
          The Department of Agriculture seems to get the allocations right. I had this same situation when the T/P moved from GA to NC. It was really PY to PY that time.

          Nonresident and PartYear Resident produced the same results in NC. I filed the return Nonresident NC and Resident NM.

          Thanks for both inputs.

          Peachie

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