Question

We live in SC and file jointly on federal. Spouse worked in SC first half of year and GA second half

Forum|Forum|3 years ago
February 27, 2023
1 reply
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When I reached the state portion of TurboTax online, I was told we had to…

1. Create a separate TurboTax account for my spouse

2. Create a “Mock” federal return using only his income

3. Use his mock federal return to populate a non-resident GA return

4. Report income tax paid in another state on our joint SC return to offset taxes on his GA income

5. File my spouse’s separate non-resident GA return, our joint fed return, and our joint SC return, but NOT the mock fed return

This seems overly complicated, but that’s taxes. The issue I’m running into is that there is no way, to my knowledge, to file just a state return with TurboTax. Not only that, but most of the e-file options for GA also require that we file a fed return with those companies.

Is our only option really going to be to file a separate paper return for the GA portion of my spouses income? Would the desktop version give me the ability to file two state returns?

TurboTax Premier Online

M

MonikaK1

If you both lived in South Carolina all year, you can file a joint Federal return, a joint Resident return for South Carolina, and a joint Nonresident return for Georgia. Prepare the Federal return first, then the Nonresident state return. Answer all of the TurboTax interview questions for the Federal return and for each State. The information you enter in the Federal section is needed because TurboTax uses that information to make all of the basic entries in the State section.

The instructions you saw are for the situation in which you are choosing to file separate returns. You can use TurboTax Online to test different scenarios before deciding to file jointly or separately. Click here for more information. Filing separately can be more complex for multiple state situations.

When you live in one state and work in another, you often need to prepare two state tax returns - a nonresident return for the state in which you work and a resident return for the state in which you live. In this situation, you generally prepare the nonresident state return first. Follow the prompts in the nonresident state return in TurboTax to identify which income from your Federal return is sourced in that state. If there is tax due to that state, you may be able to claim a credit on your resident state return for the tax paid to the other state.

Some states have reciprocity agreements so that you don't have to prepare two returns if you only receive wages in the nonresident state. South Carolina and Georgia don't have such an agreement. See this article for information on states with reciprocity agreements.

As a resident of South Carolina, you are taxed on all your income regardless of where it is earned. In order to avoid double taxation, South Carolina allows a tax credit for taxes you paid to another state on wages earned in that state.

For South Carolina purposes, file the SC1040 with the SC1040 TC claiming a credit for taxes paid to another state, and attach a copy of the other state’s return and the federal return. A copy of the other state’s return and the federal return must be attached to the SC1040.

See here for more information from the State of South Carolina.

See here for more information from the State of Georgia.

See also this TurboTax article and this one on multiple-state situations.

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