As South Carolina residents, you would file a South Carolina return and report all of your income on that return. You will also need to file a Georgia non-resident return. This return should only include the income your husband earned in Georgia. Both Georgia and South Carolina will tax the income earned in Georgia; however, South Carolina will issue a credit for taxes paid to Georgia so that you aren't double taxed. The Georgia income will have to be allocated in the Georgia return section. You should prepare the Georgia return first.
