filing tax return?

Question

Hi
My residence is NC and i have short term contract in Ct
I on a w2 and i'm deducted Ct taxes
I live in a hotel room till i complet my contract.
My question is do i need to file a CT state tax form at the end of the year or i simply file a Nc and deduct what i paid in CT plus my expenses

Thanks

Answer 1

You will certainly have to file NC. You do not give enough information to establish whether you will file part-year resident in NC or full year. In any case, although NC taxes you out the wazoo for income taxable to NC, it is pretty generous in giving credit for taxes paid to other jurisdictions.

As well as the state tax issue, you will want to ensure you claim the maximum expenses for working away from home. You might find it worthwhile to consult a CPA. Now, although I am a tax preparer in NC, working for a CPA, I will not stoop so low as to advertize my services here. That really would be very tacky, as well as being wholly unethical. Find a CPA either in CT or NC who makes you feel comfortable. The advantage of having a preparer in one of those states is that they should have an encyclopedic knowledge of their own state's return. Most CPA's have access to technical services which will allow them to prepare an out-of-state return efficiently. In fact, thinking about this as I type, you might be better going to a CPA in CT. I have no idea how difficult a CT return is to prepare, but the NC one is very simple, especially if you are treated as Resident in NC. A competent CPA in CT should have little problem doing it right. The trick is to finalize the federal first!

Answer 2

You probably need to file both, CT as a non-resident and NC as a resident. You shouldn't get taxes twice on the same income - most states have reciprocal agreements with other states to allow deduction of money made in other states.

You might talk to a CPA (not someplace like H&R Block or Jackson Hewett) to find out the rules for these states, and also find out what of your expenses are deductible. They're somewhat limited if you're on a W-2. It can depend on how long the assignment is expected to last.

Answer 3

You need to file a Non-Resident return for Connecticut.
If CT and NC are what they call "reciprocal states" (in other words, they give each other credit for taxes in the other state), then you should come out about the same.

Good luck

Answer 4

I would call an accountant, I was referred to a CPA firm last year by a friend, so I went to Frohling & Associates, I previously went to H & R Block big mistake but anyway. They do out of state taxes and even multi-state taxes and have Free E-file. I got my return in less then 10 days as well.

Answer 5

Must file CT non-resident return as may owe more or get refund.