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Level 7
February 9, 2026
Question

Part-year Resident W-2 Reports All Wages to Previous State of Residence

  • February 9, 2026
  • 0 replies
  • 10 views

Taxpayer was transferred from CO to NC. However, the employer reported all wages to CO and only withheld CO tax.

I allocated the CO and NC wages in the part-year resident allocation schedule in the federal info worksheet.

However, the NC return doesn't recognize the wages allocated to NC on the NC part-year resident worksheet. If I identify wages as part-year then all of the W-2 wages is reported to NC. If I identify wages and NNC (Not NC) then none of the wages are reported as NC income. It's as though NC ignores the allocation worksheet.

I know, from previous posts, that we are Never to change the W-2 information as reported by the employers, even if it is incorrect, and that the state return has a place to make an adjustment for wages earned while a resident.

I can't find a place on the NC return to adjust for wages earned in NC.

Where do I make the adjustment on the NC return to recognize NC wages?

Thank you.