I lived in CA the first 6 months of 2006 then moved to NC for the last 6 months. Since I have always done my own taxes I was not sure if it would be too complicated to do my own this year. I want to do them via the internet. Do I file twice? One for CA and one for NC?

You prepare one federal return and two state returns, one for California and ine for North Carolina.

You will file as a part-year resident for each state, paying taxes only on the income earned in each respective state.

You can file the federal return electronically, but you should file the stae returns through the mail, because you will want to attach a copy of the other state tax return when you file. This practice answers a lot of questions before they are asked.