Question

Live in SC, Work in PA

Forum|Forum|4 years ago
January 26, 2022
1 reply
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I live in SC, work remote for a company in PA. Pay taxes to PA

I started to take a distribution from some Qualified Annuities.

When I file which state do I need to show the withdrawal from?

How do I file for income "forgiveness" for SC?

If you live in SC and work remotely in SC from a company in PA, you do not need to pay taxes to PA. Since you are physically located in SC while you are working, your work location is considered to be SC.

When you draw from Annuities, you will also include them in your SC income.

What type of income forgiveness are you looking for in SC?

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R

rlrprodAuthor

when I do my state income tax, would I file for SC and fill in the amounts that were withheld for PA? Do I need to file a State return for PA? For 2020, I lived part year in PA and part year in SC - when I filed - I did the return for PA and did something for SC that said my taxes were paid to PA???

T

ThomasM125

It is possible that Pennsylvania will tax you on income from there if the arrangement is temporary and specifically if it is associated with Covid, or you have the opportunity to work in Pennsylvania but choose to telecommute instead.

Since you live in South Carolina, you should file a resident tax return there. When you enter your W-2 form, enter the withholdings as they are stated on the form, with the PA abbreviation in box 15 so it will not be assigned to South Carolina.

Since you have Pennsylvania tax withheld from your pay, you need to file a non-resident tax return there. If you decide you should not be taxed on your Pennsylvania income, you should notify your employer of this so they will stop withholding taxes there.

If you end up being taxed on the same income in Pennsylvania and South Carolina, you can compete a credit for taxes paid to another state on your South Carolina return. You should complete your Pennsylvania return first to make that calculation easier and more reliable in TurboTax.

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