Do NC tax income earned in other states?


E

Eylon Shalev

My collage student daughter is a North Carolina resident
studying in Tennessee. She worked part time during 2006 both
in NC and TN. TN don't have state income tax so no state
taxes were withheld or charged by TN. The standard NC state
tax form includes her TN income as a taxable income in NC.
Is that right? If not where is the place to deduct that TN
income?

Thanks,

Eylon Shalev
 
Last edited by a moderator:
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P

Paul Thomas

Eylon Shalev said:
My collage student daughter is a North Carolina resident
studying in Tennessee. She worked part time during 2006 both
in NC and TN. TN don't have state income tax so no state
taxes were withheld or charged by TN. The standard NC state
tax form includes her TN income as a taxable income in NC.
Is that right? If not where is the place to deduct that TN
income?
Every state taxes all of the income of their resident
citizens. So TN income is taxed by NC because that is her
home state.
 
Last edited by a moderator:
H

Harlan Lunsford

Eylon said:
My collage student daughter is a North Carolina resident
studying in Tennessee. She worked part time during 2006 both
in NC and TN. TN don't have state income tax so no state
taxes were withheld or charged by TN. The standard NC state
tax form includes her TN income as a taxable income in NC.
Is that right? If not where is the place to deduct that TN
income?
Your state, like others, tax all income of it's residents,
and that includes your daughter. Only IF TN had an income
tax, and daughter filed a return, could she get credit for
another state's tax on the NC return.

Every so often I have a client who worked down in Florida
for maybe six months and has to pay tax on that and all
other to Alabama. And I do mean he pays.

ChEAr$,
Harlan Lunsford, EA n LA
 
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B

Bill Brown

Eylon Shalev said:
My collage student daughter is a North Carolina resident
studying in Tennessee. She worked part time during 2006 both
in NC and TN. TN don't have state income tax so no state
taxes were withheld or charged by TN. The standard NC state
tax form includes her TN income as a taxable income in NC.
Is that right? If not where is the place to deduct that TN
income?
Your daughter pays income taxes to her state of residence on
all income recieved during the year. Most states with an
income tax (including North Carolina) give a credit for
state income taxes paid on the same income to other states
to avoid double taxation.. Since Tennessee has no individual
income tax there is no double taxation and no additional
deduction on her NC return.
 
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