401K and part year resident Help!
I withdrew my 401K balance in January 2008.
I moved from North Carolina to NY in March 2008
I split my 401K withdrawal between NC and NY tax based on the portion of time I spend in each state, reporting apporximately 20% NC and 80% NY, paying the taxable amount to each state
Now NC says I owe their state tax based on the entire amount of the withdrawal, and has also assessed a deficiency penalty.
Surely I don't have to pay 100% of the tax due to the withdrawal to NC AND 80% to NY, do I?
Any advice or suggestions will be greatly appreciated! |