State Tax Question

So, I've got everything ready to go for tax preparation. One question, will we have to submit a NC Tax return for simply earning $127 in interest income on a state employees credit union account I purposely left open in NC? Didn't live or work there at all in tax year 2008 -- the only connection is that account.

I left the account open so if we ever returned to NC at any time we'd still be members of the credit union no matter where we ended up working after a return. The credit union has the best mortgages (where we had our first mortgage) and has awesome MM rates.

Thanks,

Kevin

[poky]

Hmmmm...

http://www.dornc.com/taxes/individual/filing.html

Here's the relevant bit:

I'm a nonresident. Do I have to file?

* If you are a nonresident, you must file if:
o you received income for the taxable year from North Carolina sources that was attributable to ownership of any interest in real or tangible personal property in the state or derived from a business, trade, profession, or occupation carried on in North Carolina, or is derived from gambling activities in this state and whose total income from all sources -- both inside and outside -- the state equals or exceeds the amount for your filing status shown in the charts below.

So...I guess it depends on if interest income qualifies as "attributable to ownership of any interest in real or tangible personal property in the state", and I honestly don't know the answer to that, though I'm willing to bet someone here probably does...

[DCJenn]

Honestly, I wouldn't bother.

Jenn

Thanks Sandy and Jen.

Well, according to Sandy's research, I should be in the clear. The income is just interest from a money market - nothing to due with tangible or real property or a business.

Jen - I agree with your sentiment. Although I think the NC revenue folks are a little crazed. Last tax year, I paid them though I got a federal and Maryland refund. Months later, I got an audit letter from them wanting me to send copies of my W-2s even though I paid in to them. I did and haven't heard from them again.

Hoping for a nice refund all the way around this year. Too bad we've probably spent it already on fellowship interviews.