Moving to Calabash or Sunset Beach From New York or New Jersey: Your Tax Checklist

Quick Answer

The year you move from New York or New Jersey to Calabash, Sunset Beach, Ocean Isle Beach, Carolina Shores or Shallotte, you generally file a part year resident return in your old state and a part year return in North Carolina. Income earned before the move is taxed by your old state; income after the move is taxed by North Carolina. Our Calabash office at 9930 Beach Dr SW handles both sides, and our New York and New Jersey offices know the returns you are leaving behind.

North Carolina income tax

North Carolina uses a single flat income tax rate that has been stepping down in recent years, which is lower than the top rates in New York and New Jersey. North Carolina does not tax Social Security benefits.

Retirement income

Some government retirees qualify for a North Carolina exclusion under the Bailey settlement if they had five or more years of creditable service as of August 12, 1989. This mainly applies to North Carolina and federal government pensions. Most other pensions and IRA withdrawals are taxable in North Carolina.

Proving you moved

• Get a North Carolina driver license and register to vote
• Change your address with the IRS, banks and Social Security
• Keep closing documents on your new home and sale of the old one
• If you keep a home up north, track days spent in each state

Selling your old home

Gain on selling your old main home may be excludable (up to $250,000, or $500,000 for married couples) if you meet the ownership and use tests. New Jersey may require a withholding form at closing for nonresident sellers.