How to file taxes with W2s from two different states (NY and NC)?

Hey all, I'm in a bit of a tax situation and could use some advice. I've got two W2s this year - one from North Carolina and another from New York. I usually handle my own taxes but this is throwing me for a loop. When I'm filing, should I be combining these wages together on a single return? Or is there some special way to handle income from different states? For example, if I earned like $54,000 in North Carolina and around $78,000 in New York, do I just report a total income of $132,000? Or should I somehow be filing them separately because they're from different states? Sorry if this is a basic question! Just want to make sure I'm doing things right and not messing up my taxes. Thanks in advance for any help!

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19 comments

Amara Okonkwo

•8M

You'll file one federal tax return that combines all your income ($132,000 in your example). For state taxes, you'll need to file a return in both NY and NC since you earned income in both states. Most tax software makes this pretty straightforward. You'll enter both W-2s completely, and the software will calculate your federal taxes on the total income. Then it will prepare separate state returns for each state where you earned money. Each state return will only tax the income you earned in that state. Make sure you indicate which state's tax was withheld on each W-2. This is important because you'll get credit for taxes already withheld in each state.

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Amara Okonkwo

•8M

Yes, most tax software companies charge extra for each state return. Shop around though - some offer free or discounted second state returns, especially early in tax season. You won't necessarily pay more overall taxes by working in two states. Each state only taxes what you earned there. However, if one state has a higher tax rate than your resident state, you might pay a bit more than if all income was earned in your lower-tax home state. Your resident state usually gives you credit for taxes paid to other states to help prevent double taxation.

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Dylan Hughes

•8M

After dealing with multi-state returns for years, I found https://taxr.ai super helpful for my situation. Last year I worked in Florida and California and was totally confused about how to handle the different state tax requirements. I uploaded my W-2s to taxr.ai and it automatically recognized I had income from multiple states and guided me through exactly what I needed to file where. The best part was it showed me which deductions I could take in each state and explained how my resident state gave me credit for taxes paid to the non-resident state. Saved me from accidentally double-paying on the same income!

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Dylan Hughes

•8M

It's different from TurboTax because it focuses specifically on analyzing your tax documents and giving personalized guidance rather than being a full filing platform. I still used my regular filing software but with much more confidence after using taxr.ai. The residency determination feature is actually one of its strengths. When I uploaded my documents, it asked specific questions about when I moved, how many days I spent in each state, and where my permanent address was. It then explained exactly how to file in each state (resident vs non-resident) based on those factors. It even warned me about specific state-to-state reciprocity agreements I needed to know about.

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Sofia Rodriguez

•8M

I tried taxr.ai after seeing it mentioned here and it was genuinely helpful! I was in a similar situation with W-2s from Illinois and Michigan and was completely lost about how to handle it. The document analysis saved me hours of research - it immediately flagged that Michigan and Illinois have different rules for handling remote work and explained exactly what I needed to document for each state return. I would have definitely filed incorrectly without it. The step-by-step guidance made it super clear which income went where and how the resident credit system worked between the states. Definitely using it again this year since I'm now working in three different states!

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Dmitry Ivanov

•8M

If you're having trouble getting answers from your state tax departments, try https://claimyr.com to get through to a real person. I was stuck in an endless loop trying to figure out how my resident state (NC) would credit taxes paid to NY, and the NC Dept of Revenue phone line kept disconnecting me after 45+ minutes on hold. With Claimyr, I got a callback from the NC tax office in about 20 minutes and resolved my question right away. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained exactly how to report my out-of-state income and calculate the credit for taxes paid to another state. Saved me a ton of stress!

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Dmitry Ivanov

•8M

Yes, it really does get a human to call you back. They use some kind of technology that navigates the phone menus and holds your place in line, then calls you when they reach a representative. It's not for the IRS specifically - I used it for my state tax department. I was skeptical too at first. But I was desperate after multiple failed attempts to get through. The system gave me updates while it was waiting in the queue, then connected me directly with a NC tax representative who answered all my questions about how to handle my NY income on my NC return.

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Miguel Herrera

•8M

So I'm eating my words right now. After posting that skeptical comment, I was still stuck with my NY/NJ tax situation and getting desperate. Tried Claimyr yesterday afternoon, and no joke, I got a call back from an actual NY Department of Taxation representative within 30 minutes. The rep walked me through exactly how to report my NJ income on my NY return and which form I needed for the credit for taxes paid to another state. She even gave me a direct reference number to include with my return in case there were any questions. Definitely the best money I've spent during tax season. After three weeks of trying to get through on my own, I had my answer in under an hour.

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Zainab Ali

•8M

I had the same situation last year with W2s from Texas and California. One thing nobody mentioned yet - check if you need to file as a part-year resident in either state if you actually moved during the tax year. If you just worked in both places but maintained your primary residence in one state, then you're typically a full-year resident of your home state and a non-resident of the other. Don't forget to check if there's a reciprocal agreement between NC and NY (though I don't think there is). Some neighboring states have agreements where you only pay tax to your resident state.

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Zainab Ali

•8M

That definitely simplifies things! Since you maintained your primary residence in NC, you'd file as a full-year NC resident and as a non-resident of NY. Your NC return will include ALL your income (both NC and NY earnings), but you'll get a credit for taxes paid to NY. This prevents double taxation. Your NY non-resident return will only include the income you earned while working in NY. Just make sure you keep good records of exactly which days you worked in NY versus NC - some states are getting more particular about this, especially with remote work becoming more common.

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Connor Murphy

•8M

Just a heads up that NY has some of the most aggressive non-resident income tax policies in the country! If you physically worked in NY, they will definitely want their cut. Make sure you're tracking exactly which days you worked in which state. NY has the notorious "convenience of employer" rule where they might try to tax income you earned while physically in NC if it was for a NY-based company and you were working remotely "for convenience" rather than necessity.

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