State Tax Filing for SSDI

Forum|Forum|2 years ago
April 9, 2024
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Hi, my wife and I moved from SC to NC mid year; however, my income was only taxed in SC for the entire year. My wife is retired (no earned income) but she received SSDI toward the end of 2023 that wasn't taxed (Federal or State). When filing as SC non-resident, the SSDI doesn't seem to be accounted for on the SC state tax form - line O - (only is if I file as Resident). I know to file as non-resident, giving me a higher "SC Income Subjext to Tax", but do I need to file a NC Return as well to account for the SSDI she received?

Joe

DMarkM1

SSDI is not taxable in NC nor SC and so any of those benefits that are taxable at the federal level will be excluded in the NC and SC state interviews.

Having said that you should be filing a joint return as part-year residents in NC and SC. In each state interview you will then allocate income from the various income sources you have according to your resident state when you received the income.

Since taxes were withheld/paid to SC for all the wages, you will likely get a refund from them. However, since no taxes were withheld/paid to NC you will likely owe taxes there.

In the "My Info" section edit yours and your spouse's personal information to indicate you lived in NC on 31 Dec and answer "Yes" you lived in another state and select SC; enter the date you moved. This will generate part-year returns for each state.

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