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State tax filing
You should file a part-year return for both NC and SC. Prepare your nonresident return first (NC) since you did not live in NC on December 31, 2017.
As you indicated, as a part-year resident of SC, you
may consider yourself a full-year resident or a nonresident.
Option 1. Full-year Resident. If you elect to file as a full-year resident, file SC1040. Report all your income as though you were a resident for the entire year. You will be allowed a credit for taxes paid on income taxed by South Carolina and another state. You must complete SC1040TC and attach a copy of the other state's income tax return.
This is the easiest approach since you don't have to prorate your income between the 2 states.
Option 2. Nonresident. If you elect to file as a nonresident, file SC1040 with Schedule NR. You will be taxed only on income earned while a resident in South Carolina and will prorate your deductions and exemptions.
Some fields will be pre-populated with figures from your W-2. It's OK to use these figures. You will have to prorate other items, such as interest, capital gains, etc. yourself. You can allocate by the time you lived in each state, for example: 7/12 (7 months) for North Carolina and 5/12 (5 months) for South Caroline
To find the most beneficial filing status, you can first prepare your SC return as a PY resident filing as a resident and then go back and complete the return filing as a nonresident. You make the selection on the South Carolina Residency Information screen in the SC interview. [See Screenshot #1.]
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‎June 1, 2019
4:37 AM
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