as Non-resident of North Carolina, what mean if it show North Carolina income percentage is 34.78000

Question

I'm non-resident of NC but has rental income there, when I input all my income and expense for Federal and running NC tax, it's shows 'Your North Carolina income percentage is 34.780000'. Can anybody help me to understand what's this means?

Thanks!

new · Answer

Thanks very much!

TaxMorgan · Answer

Hello new,

As a nonresident of North Carolina, you are only taxed on the income you earned from NC sources, such as your rental property there. The "North Carolina income percentage" of 34.78% means that about 34.78% of your total income from all sources is considered NC-source income. This is calculated on Form D-400 Schedule PN.

North Carolina uses this percentage to determine how much of your total taxable income is subject to NC tax. So rather than taxing all of your income, NC will only tax the portion that is attributable to NC sources, which in your case is roughly 34.78% of your total income.

If you have any more questions about specifics regarding your tax returns you may want to reach out to us directly from the support center where we will be able to view your specific account information and assist directly.

new · Answer

And further to my above question, what this persentage will impact my NC tax? Thanks！