State tax filing

no one can force a company to withhold non-resident state income taxes.   that's because every state that I know of would require your company to register as a withholding agent before they can legally withhold that state's income taxes and be required to file withholding payroll tax returns.  you can't force a company to do it but you can ask.

 

I disagree with the other answer

"You will show that you paid taxes to South Carolina and assign those taxes back to Alabama. When it asks what percentage of the income was earned in South Carolina, you will put zero. You will then put 100% for Alabama on the Alabama return."

 

you say you have no physical presence in SC (ie you do not perform any work in SC) so you would file to get back all the withholding.  I base this on a ruling by SCOTUS that concluded a state can't tax you if you have no physical presence (not part of the ruling but  nor income-producing property in that state). 

 

I'm a resident of Alabama but work and live part-time in Tennessee. it's important for you to figure out which state is your state of domicile. 

 

Domicile is a person’s permanent place of dwelling. It is a legal relationship between a person and a locality. It may or may not be of same meaning as the term ‘residence’.

The concept of domicile has different meanings in different context. For purposes of jurisdiction, “domicile” means a legal residence which is the place where a person has fixed dwelling with an intention of making it his/her permanent home.

Domicile is a combination of two factors namely, residence and intent to remain. As the term domicile includes residence, the scope and significance of the term domicile is larger than the term residence. An individual may have several residences whereas; s/he will have only one domicile. Domicile is more used in reference to personal rights, duties and obligations (filing tax returns).

Generally residence is referred to a place, where one person lives. It is also a building used as home. Residence is of a more temporary nature compared to domicile. An individual’s present physical location of stay is residence. It may be one among several places where a person may be present. Residence can also be referred to a person’s fixed place of stay without any intention to move from there.

Domicile involves intent of an individual whereas, residence is something objective. A person may have his/her residence in one place and his/her domicile in another.

Whether the term ‘residence’ used in a statute will be construed as having the meaning of ‘domicile’, or vice versa, depends on the purpose of the statute. Also, the nature of the subject matter as well as the context in which the term is used would be taken into consideration.

Residency is a more flexible concept than domicile, and permanency is not a requirement for residency. Even a temporary and transient place of dwelling can qualify as residence. In addition, a minor is legally unable to establish a residence separate and apart from their parents.

 

Alabama says: In general, one is a resident of Alabama if one is domiciled in the state. That is, if a person has a permanent home in the state or intends to return to the state after a temporary absence elsewhere, the state of Alabama will consider him a resident. The individual bears the burden of proof to show if they are no longer domiciled in Alabama.

 

Things that a state would look to in determining domicile include where do you vote, where do you have a drivers license, do you own and live in one place while at times renting to live in another place, how many days or nights are you present in each state.  you'll have to make this determination of domicile.  

so if your domicile is AL you file a full-year resident return and pay state income taxes there on your worldwide income. you get no credit for SC taxes.  you should talk to your company about withholding AL income taxes. if they won't you'll need to pay estimates to avoid penalties for not paying taxes on a timely basis.

 

on the other hand, if TN is your state of domicile. since it has no income tax no return for this state, 

per AL:  An Alabama Part-Year Resident is any individual who moved into the state. Income attributable to Alabama is taxable on the state return. You may need to claim a credit for taxes paid to the other state if the same income is taxed on both state returns.

An Alabama Nonresident is an individual that does not maintain a permanent home in Alabama.

 

see this link for AL filing requirements

https://support.taxslayer.com/hc/en-us/articles/360015704632-What-are-Alabama-s-Filing-Requirements- 

in these cases also, you make estimated tax payments.

 

 

state taxes are complicated. for example, pro athletes many times have to file in many states because they're domiciled in one state but are deemed to earn their salary while playing in a different state.