I work in North Carolina and live in South Carolina. i went on FMLA and short term disability for part of 2021 for a medical condition. The disability coverage was through a private insurance company as part of my benefits package through my North Carolina employer. I received a W2 from the private insurance company covering my 2021 disability payment covering the part of the year I was on disability. No state or federal income tax were deducted from my disability payments which is fine, I knew they weren't going to.
But i have 2 questions:
1: Do I just add disability payments as a separate W2 just like my regular employer's W2?
2. Since I work in North Carolina but live in South Carolina, which state do I do I pay taxes on the disability income? The disability W2 is confusing because in Box 15 where state income is listed, it lists both North Carolina AND South Carolina. Furthermore, in box 16 where it lists State Wages, it lists the same total income twice, once for each state.
Basically, which state gets the taxes for my disability income: the state in which I work? or the state in which I live.
Thanks for any help.
