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State tax filing
Based on the information you shared, your non-resident Indiana return is correct. Even though there was Indiana state tax withheld, none of the income was taxed by Indiana because you performed all of your work in South Carolina.
If you completed the Indiana return first, then the credit for taxes paid to another state should have populated automatically showing that no actual taxes were paid to Indiana. You should revisit that section of your South Carolina return because there will be no credit for double-taxed income in your situation. Only South Carolina will tax the income because you were a resident of South Carolina and performed all of your work there. The income would have been double-taxed if you had worked in Indiana while living in South Carolina.
This means that you will have a balance due for the South Carolina return since there were no state taxes withheld from your wages for that state.
If your situation remains the same for 2021, you should request that your employer change the withholding to South Carolina instead of Indiana.
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