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VT Nonresident 100% remote (SC resident)

I am a SC resident employed 100% remote for a VT company. 
What do I do about state W4 withholdings? My employer only collects VT W4 paperwork. 

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1 Reply
awillis2
Employee Tax Expert

VT Nonresident 100% remote (SC resident)

If you live in one state and your remote work Employer is another state, you may be required to prepare a tax return in your resident state as well as a second, non-resident tax return in your remote Employer's state.

 

Particularly here, where you mention that your employer only accepts Vermont W4 paperwork. Some remote employers will withhold taxes for their workers in their home state on request, but it sounds like you may have already approached your human resources department for that information.

 

Start by learning about common situations, like yours, where You've Worked in a State Where You're Not a Resident .

 

@CheriSCMT  Since your employer can't or won't withhold SC taxes for you, you're likely to owe taxes to SC since there is no state withholding on your remote work wages. You should consider paying estimated taxes on a quarterly basis to SC.

 

SC income tax rates ranges from 0% to 6.3% for tax year 2024.

 

In order to calculate your estimated SC taxes due, you may use the worksheet on Form SC1040ES:

https://dor.sc.gov/forms-site/Forms/SC1040ES_2024.pdf

 

You'll need information from your 2023 Federal tax return to complete the calculation.

 

Once you've calculated your estimated tax due to SC, you'll be able to make payments electronically at the SC Department of Revenue with their "My Doorway" portal.

https://dor.sc.gov/tax/individual-income

 

The most important thing to remember about preparing multiple state tax returns is to prepare your Non-Resident tax return first. This means, in your case, you should prepare the Vermont return in TurboTax first to claim the withholding from your employer. When you prepare your South Carolina tax return, that information will be carried forward to the second state return.

 

[Edited 5/31/2024:1:40 p.m. PST]

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