Nonresidents and Part-Year Residents

You are considered a nonresident if you are legal resident of another state. A nonresident is required to report income received from services performed in North Carolina or from tangible property located in this State. You are a part-year resident if you moved to North Carolina and became a resident during the tax year or you moved out of North Carolina and became a resident of another state. Part-year residents are required to report all income received while a resident as well as income received while a nonresident from services performed in North Carolina or from tangible property located in this State. If you are a part-year resident or nonresident, you must complete Part D, Lines 24-26 of Form D-400 Schedule S (2016 North Carolina Supplemental Schedule) and attach pages 1 and 2 to Form D-400. See page 11, Instructions for Form D-400 Schedule S (Pages 1 and 2) of the 2016 Individual Income Tax Instructions (Form D-401) and complete the Part-Year Resident/Nonresident Worksheet on page 14 to show the computation of North Carolina Income for Part-Year Residents and Nonresidents.

You must include a copy of your federal income tax return with your North Carolina return if your federal return does not show a North Carolina address.

If you filed a joint federal return and one of you was a nonresident of North Carolina who had no North Carolina taxable income, you may file a joint State return. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. However, you still have the option of filing your State return as married filing separately. If you choose to file a separate North Carolina return, you must complete either a federal return as married filing separately reporting only your income, deductions, and exemptions, or a schedule showing the computation of your separate income, deductions, and exemptions and attach it to your North Carolina return. You must also include a copy of your joint federal return unless your federal return reflects a North Carolina address.

Part-year residents who, while they are North Carolina residents, receive income from sources in another state or country that is taxed by another state or country may be eligible to claim a tax credit. Nonresidents are not entitled to tax credits for taxes paid to another state or country.

To order forms D-400, D-400 Schedule S, D-400TC and instructions, call 1-877-252-3052. The forms may also be obtained from a service center or from our Order Forms page.