TomD8
Level 15

State tax filing

@GeorgeDenseff wrote:  "You will show that you paid taxes to South Carolina and assign those taxes back to Alabama."

 

Unfortunately, it is not possible to "assign" withheld SC taxes back to Alabama.  What you must do is this:

 

1.  At year's end, enter your W-2 as is.  File a non-resident SC tax return, but allocate zero income to SC.  This will result in SC refunding the incorrectly withheld taxes to you.  If you neither live in, nor physically work in, SC, then your work income is not subject to SC taxation.

2.  File a resident Alabama tax return, reporting all your income from all sources.

3.  Claim exemption from SC withholding as described by @Hal_Al .

4.  If your employer cannot or will not withhold AL state taxes for you, begin making quarterly estimated tax payments to Alabama.  This web reference explains how to do that:

https://revenue.alabama.gov/individual-corporate/individual-income-tax/individual-income-estimated-t...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.