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February 6, 2021
Question

State Taxes

  • February 6, 2021
  • 1 reply
  • 0 views

I work for a Union ( that is an umbrella for several companies) and I live in SC but there are many companies through the Union that have home offices in different states, which state do I file my taxes under, the state I live in or the state the company I work with is in?

    1 reply

    DawnC
    Employee
    February 6, 2021

    You have to file a resident tax return in the state(s) in which you reside - South Carolina.   If you went to another state and earned income there, you would need to file a non-resident return there as well as the resident SC tax return.  What matters is where you earned the income—not where your employer is located.

     

    Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in.

    Some examples are:

    • Wages or income you earned while working in that state
    • Out-of-state rental income, gambling winnings, or profits from property sales
    • S Corporation or partnership income
    • Beneficiary income from a trust or estate
    • For active duty military: non-military income earned outside your state of legal residence
    • If your employer withheld taxes for the wrong state

    You don't need to report interest income from an out-of-state bank account on a nonresident return. It only needs to be reported on your federal and resident state return.  Every state has its own rules regarding nonresident returns. For example, nonresidents with more than $33 in Pennsylvania-sourced income must file a return, while nonresidents with less than $600 in Missouri income don't have to file.   If you're not sure, your best bet is to contact the Department of Revenue in that state, or visit their website. Most state websites have a section devoted to nonresidents and part-year residents.

     

    When you do your taxes with TurboTax, we'll ask you for the info we need to help you file a nonresident state return.   Instructions are in the link.

     

    Note: If the other state happens to be Alaska, Florida, Nevada, South Dakota, Texas, Washington, or Wyoming, you won't be able to file a nonresident return because those states don't collect income tax. However, you'll still need to report that income on your resident state return (assuming your resident state collects income tax) as well as your federal return.

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