Is Tax Paid to South Carolina showing wrong amount for my North Carolina return?

misha0926 · ‎June 4, 2019

I work in SC, live in NC. Turbotax is showing Tax paid to SC is $3,696 but my W2 shows state income tax paid $5,178. Should I adjust turbotax's number?

Scratch this question. I finally found the answer on the NC Department of Revenue website. Since I am getting a refund from SC of $1,481, the credit I list on my NC tax return is the total tax paid less the refund received. Hope this helps others with 2 state filings.

SteamTrain · ‎June 4, 2019

Absolutely correct.

Max allowed credit is the taxes that SC "kept" (i.e. net after SC refund)

A second qualification of the amount, is that the credit allowed cannot exceed the % that NC would-have charged for the same income. Thus, if the non-resident state taxes those wages at 6%, while NC taxes at 5%, then the credit is only for up-to the 5% that NC would have charged.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

Is Tax Paid to South Carolina showing wrong amount for my North Carolina return?

State tax filing