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April 7, 2024
Question

I worked in SC Jan to April then April to August in PA then back to SC for the rest of the year, both places with the same employer. How do I file this?

  • April 7, 2024
  • 1 reply
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I don't know how to file for both states but I have W2s from them.

1 reply

AmyC
Employee
April 12, 2024

You file as a SC resident and PA nonresident. You were just there working, you didn't change your license and lifestyle. Your resident state taxes all income but gives a credit for income taxed by another state.  Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

 

  1. First, prepare your non-resident PA return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
  2. Then prepare your resident state SC return and it will generate a credit for your income already being taxed in the non-resident state. 
  3. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

 

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

 

You get credit for the lower state tax on the lowest taxable amount.

  • Each state calculates taxable income differently.
  • Each state has its own tax rate/ system.
  • You get the lowest of both categories as a tax credit.
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