My husband worked in NC & SC in 21/22,(most income in SC) we received refund from SC & owed NC, now NC is saying we got back too much from SC & owe more to NC??

Forum|Forum|2 years ago
April 25, 2024
1 reply
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How could we owe MORE money to NC when we made significantly more money in SC & already owed NC? The money NC is saying we owe would basically wipe out anyone we received back from SC.

TurboTax Deluxe Online

JulieS

Because you received a letter from your state about a return you did in TurboTax, you can get help with that.

If you purchased Audit Defense for the return, follow this link to get help with your letter.

If you didn't purchase Audit Defense, you can contact the Audit Support Center for help with your letter. Follow this link for more.

The Tax Expert you reach will be able to help you review your return and understand the letter. If they believe the state is wrong, they can help you respond to the letter.

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Hal_Al

Employee

You don't say where you live. That's important.

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.

TomD8

Employee

The other important thing is that in TurboTax you must file the non-resident state return first, before you do your home state return, so that the program can apply a credit on your home state return for the taxes you paid to the non-resident state. See this TT help article:

How do I file a nonresident state return? (intuit.com)

**Answers are correct to the best of my ability but do not constitute tax or legal advice.