I worked in NC for a while till July 2007. Then I left for AZ to do a PAID INTERNSHIP untill January 2008. Now I am back to my full time job in NC. On my 2007 Tax Returns, how should I claim my residency? If i decide to go back to school, is there a possibility that my school might make me pay out-of-state tuition? Please help.
Thanks in advance.
NC resident; AZ non-resident.
A little more detail ... you did not lose your NC residency, because your absence from the state was temporary. You were a NC resident for the entire year of 2007. You were a nonresident of AZ, but you had AZ source income from working there. You would file a nonresident AZ return and pay tax on your AZ earnings. On your full-year resident NC return, you would include your AZ earnings, and NC will give you credit for the tax you paid to AZ on that amount, limited to the NC tax on the same income.
Katie in San Diego
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