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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4025
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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NC send notice of intent to access for 2009 pension and 401k

Resolved Question:

NC send notice of intent to access for 2009 pension and 401k benefits.. Has asked for all kinds of info utility bills bank statements drivers license vehicle regristerion etc.
Live in motormotor home and travel. Lived and worked in NC before.
I was in WV 6 months, NC 5 months and Ga 1 month.
Where should I have filed state tax?
Submitted: 10 months ago.
Category: Tax
Expert:  Lane replied 10 months ago.

Lane :

Hi,

Lane :

Each state has it's own laws about (1) who must file (2) whether you are a resident or not and based on that (3) whether you file a resident tax form and a non-resident (usually having the extent NR) from or not

Lane :

Also, as in the case of GA, you may not have earned ENOUGH (there's usually an exempion amount) to have to file

Lane :

Either way, you generally do the non-resoient state first and then there will be a CREDIT for taxes paid to other states on your resident tax form

Lane :

Let me see if I can find NC's definition of residency

Lane :

OK, here's what NC dep of revenue says ... let me give you this in two pieces:

Lane :

(1) 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.

Lane :

(2) 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 from services performed in North Carolina or from tangible property located in this state.

Lane :

What they're prbaly trying to do isn put you in one of those two categories

Lane :

Now, let me give you one more piece from them (this is from here, by the way: http://www.dornc.com/taxes/individual/resident.html)

Lane :

Part-year residents who receive income from sources in another state or country while they are North Carolina residents which 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.

Lane :

SO it may make more sense to argue that you are part year resident (IF YOU PAID SIGNIFICANT AMOUNT TO WV) so that you can get a credit for than on the return

Lane :

TO answer you question, you will need to file in both WV and NC (but again, may do best by filing as a PART YEAR in NC)

Lane :

.

Lane :

Now ... the last piece here is to assess your residency and need to file in WV

Lane :

Who Must File
Full-year residents of West Virginia must file a tax return, even if only to receive a refund, unless the following exception applies:



  • The taxpayer and spouse, if married, are 65 or older, their total income is less than the exemption allowance plus the senior citizen modification, and they are not entitled to a refund.


Resident
This is any person who meets the following requirements:



  • He or she spends more than 30 days in West Virginia with the intent of West Virginia becoming their permanent residence, or

  • He or she maintains a physical presence in West Virginia for more than 183 days of the taxable year, even though he or she may also be considered a resident of another state.

Lane :

here's an excellent resource for Figuring out the WV piece (remember NC says that the way THEY assess residency is BASED ON whether you are a resident of another state) ... whereas West Virgina provides a much more specific way: https://www.taxbrain.com/kb/default.asp?a=235

Customer:

How does Ga assess residency?

Lane :

Just a sec ... also another area that may apply to that is did you earn enough in GA to have to file at all? ... let me check

Lane :

Really quickly" there are also some exclusion of person income for NC state income tax purposes ST & Loc Govt (in or out of state): 4,000 single, 8,000 jointly ... Federal Civil Service is the same .... Military is the same ... and they have what they call a private pension exclusion of 2000 single and 4000 marriedl filing jointly

Lane :

Now GA

Lane :

Lets start here:

Lane :

GA:



  1. You are required to file a Georgia income tax return if any of the following apply: (a) You are required to file a Federal income tax return; (b) You have income subject to Georgia income tax but not subject to federal income tax; (c) Your income exceeds Georgia’s standard deduction and personal exemptions. These requirements apply as long as your legal residence is Georgia even if you are temporarily absent from the state or live outside the state temporarily. Even though your income may be less than the filing requirements (personal exemption(s) plus standard deduction), you may file a return to receive a refund of tax withheld.

Lane :

However, for NON-RESIDENTS, which you are .. for GA purposes

Lane :

If you are a legal resident of another state, you are not required to file a Georgia income tax return if your only activity for financial gain or profit in Georgia consists of performing services in Georgia for an employer as an employee when the compensation for services performed does not exceed the lesser of five percent of the income received in all places during the taxable year or $5,000.

Customer:

The question was how does Ga assess residency"

Lane :

Whether ot not you are a legal resident of another state ... just showed you that (very much like NC)

Lane :

WV is the one that gives you numbers of says, etc

Lane :

sorry "days"

Lane :

from above "If you are a legal resident of another state, ..."

Lane :

How much did you earn in GA?

Customer:

The reason I ask was in Ga with intent to locate there perm. Was there 5 weeks.

Lane :

At this point, I'm fairly certain GA is the Di minimus issus ((very possibly no need to fle)

Lane :

Here's what is probably the most efficient way to handle this...

Customer:

But was I a legal resident in Ga.

Lane :

Get a 2009 copy of turbotax re- do (if you don't already have that) you federsl ... then (the way TT handles state taxes, is is simply flows everything to the state(s) return)

Lane :

IN waht way?

Lane :

you were at most a part-year resident

Customer:

This is very dificult. I was in Ga for 5 weeks with intent to locate there perm. Did this make me a Ga residenct. If so according to NC I am not a residenct.

Customer:

I never met there WV requirements.

Lane :

For tax filing purposes, you were a part year resident, further the personal exemption and standard is aorund $5000, so if you didn't have that much GA income ....

Lane :

Ahhh

Lane :

you said you were there 6 months 183 days makes you a resident for WV purposes

Customer:

All income is from pension, 401k, and SS.

Lane :

This all has to do with filing a return where you are require and then getting a credit from the states that provide on for taxes paid to other states

Lane :

each state has it's own (as they are all separate taxing authorities) definitions of who must file, who is resident vs part year vs non-resident

Lane :

as well as exemption for taxing pensions

Lane :

I think as I was about to type before yyour most efficient solution is the following: (hang with me a minute here)

Customer:

Thats what I am asking you to sort out for me.

Lane :

this is what a tax preparer would probably do for several hundred dollars ... I am working for a one time payment of $15

Lane :

Now let me tell you what I think is your best. most cost effective solution ....

Customer:

I will pay you more. NC intents to assess me for full year

Customer:

Was only there for 5 months.

Lane :

(1) Get a 2009 copy of turbotax (2) do (or re-do) your federal return (3) do three states, beginning with Ga and ending up with the bstate where you think you are most likely to be a resident ... ... turbotax will automatically flow the federal information to each state return and the ask several follow-up questions about where the income was earned, etc then you'll have what you should have paid NC

Lane :

File that as your answer to NC

Lane :

Did you not pay any state taxes to WV either?

Customer:

Don't believe this will work because Congree passed a law that pension and 401k benefits are taxed in state of residence.

Lane :

again, apparently I'm not being clear .... were you or were you not present in WV for 183 days?

Customer:

No

Lane :

THen you should have paid to NC (with the exception of the 2000 exemption) It's the taxes paid to another state that keeps you from paying tax twice ... but you have to pay tax on that SOMEWHERE... now it sounds like you WERE a NC resident ... you said in your orog question that you were in WV for 6 monts

Customer:

Do I have to pay NC for full year even though I was only there for 5 months.

Lane :

Didn't get that for before, based on WV assumption ... maybe no, you may qualify as a PART YEAR resident give me another minute please

Lane :

OK, now we'r're back to here:

Lane :

FROM NC: 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 from services performed in North Carolina or from tangible property located in this state.

Lane :

Part-year residents are required to report all income received while a resident as well as from services performed in North Carolina or from tangible property located in this state.

Lane :

Was the pension and 401(k) from employers in another state?

Lane :

It looks to me that they are saying that you only report the income that was received WHILE YOU WERE THERE ...

Customer:

Earned pension and 401k benefits inGa. but what about the federal law that says state is to be paid in state of residence. This very confusing.

Lane :

Again here's that link to the NC dept of revenue site ... as I said earlier, you should claim that you were only a part year resident

Lane :

I don't know what you're talking about

Lane :

Do you have a citation?

Lane :

the law probably does say that BUT you were not a resident for 7 out of 12 months

Lane :

you UNDER NCs laws ... and that is what is at issue here are a part-year resident

Customer:

No got that from one of your associates Megan

Lane :

What she gave you is correct ... HOWEVER< you were not a resident for 7 out of 5 months

Lane :

the dots completely connect here

Customer:

So hopefully NC will accept that I was only a resident for 5 months. Just want to make sure I'm good grounds in dealing with them.

Customer:

Thats how I responded to them. Waiting for a reply from them.

Lane :

Yep,

Customer:

Guess we are finished.

Lane :

just document well things like move-in dates (may a lease signed in the first month for trailer space?... along with documentation of costs paid to other states (hookup fees, etc)

Customer:

Thanks very much for your help. Will pay you a hundred.

Lane :

Whatever you do ... keep this: http://www.dornc.com/taxes/individual/resident.html

Lane :

Not sure how that can work here ... maybe a bonus?

Lane :

do whatever you can ... also be sure to come back here for the links... they'll stay active

Lane :

Sorry you can rate now

Lane :

.

Lane :

still with me?

Lane :

I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help …

Lane :

Thanks again

Lane :

Lane

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4025
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 7 other Tax Specialists are ready to help you
Expert:  Lane replied 10 months ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Expert:  Lane replied 10 months ago.

You can accept that one ... also come back here once you hear from them and we can go from there.

Lane
Expert:  Lane replied 10 months ago.



Weeell, I see you've declined that one ... thought that would be a way to get it done.

Whatever you can do is appreciated.

Let me know how it turns out

Lane
Expert:  Lane replied 10 months ago.


Thanks for the rating Bill

Lane

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