Two State return with NC and SC

Forum|Forum|2 years ago
February 26, 2024
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I have a two state return where I was living in North Carolina and my employer has two states on my return. But the federal amount is a total of $69,783. Under state, however, it has total SC Income $4200 and then the taxes taken out and under NC income it has $65,583 and then the taxes taken out of that amount. My question is how do I file the credit for "taxes paid to another state" with those incomes. Because it is only asking me the total amount that was taxed by both states but the amounts are different. And this is all on the same w2.

DMarkM1

These W2 entries and information in your question would seem to indicate you lived in NC all year but your job moved to SC or from SC at some point in the year. Assuming this is the case, your resident state (NC) taxes all the income no matter where it was earned so the best way to handle this is, in TurboTax, edit the W2 and enter in the NC line, box 16 (income) the total amount of wages from this employer (shown in box 1). Everything else can be entered exactly as your form W2 reads.

Now the forms shows double taxed income (the SC box 16 amount). Complete the non-resident SC interview first and allocate/check that the allocation only shows the SC wages (4200). Take note of the income taxed and the SC tax liability. Those are the numbers used to claim the credit for taxes paid to another state on your resident NC return.

These should now transfer to the NC interview and you should verify them when working the credit section in NC.

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