Question

Withholding in 2 states

Forum|Forum|4 years ago
March 16, 2022
1 reply
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I live in NC and work for a NC firm. I worked remotely the entire year, and some weeks in SC. I was told to designate SC on my timesheets for the weeks I was in SC. On my W2 there is withholding for both NC and SC. NC shows my full year earnings. SC show the taxible amount for only the weeks I worked there. It appears I am being taxed by both NC and SC for the weeks I worked in SC. I'm totally confused which states I should file with. Do I file SC as a non-resident? Why does NC tax me on the money earned while in SC?

T

ThomasM125

You do file a tax return in South Carolina as a non-resident. You are taxed there on income you earned while working there. You can claim a credit of taxes paid to another state on your North Carolina tax return so you won't be double taxed. You will see an option for this when you prepare your North Carolina tax return in TurboTax.

You should prepare the South Carolina tax return first, since you need to know what that tax is to prepare the credit on your North Carolina tax return.

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