https://ttlc.intuit.com/community/tax-credits-deductions/discussion/subsistence-allowance-help/01/415679#M52872 <P>I am doing brother's taxes. &nbsp;He is a South Carolina firefighter eligible for the subsistence allowance. &nbsp;He lives in the state of North Carolina. &nbsp;When I adjust his SC income down for the subsistence allowance it increases his taxes due in NC - why is this?<BR /></P> Tue, 04 Jun 2019 20:51:43 GMT maryrasmussen 2019-06-04T20:51:43Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/subsistence-allowance-help/01/415679#M52872 <P>I am doing brother's taxes. &nbsp;He is a South Carolina firefighter eligible for the subsistence allowance. &nbsp;He lives in the state of North Carolina. &nbsp;When I adjust his SC income down for the subsistence allowance it increases his taxes due in NC - why is this?<BR /></P> Tue, 04 Jun 2019 20:51:43 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/subsistence-allowance-help/01/415679#M52872 maryrasmussen 2019-06-04T20:51:43Z https://ttlc.intuit.com/community/tax-credits-deductions/discussion/generally-if-you-are-a-resident-of-one-state-north-caro/01/415687#M52874 <P>Generally, if you are a resident of one state (North Carolina), you'll get credit for the income tax paid to a non-resident state that you earned income in (South Carolina). &nbsp;If you are taking a deduction in South Carolina, this would reduce your South Carolina tax, therefore reducing the credit you can take in North Carolina for out of state taxes paid in South Carolina.</P> Tue, 04 Jun 2019 20:51:44 GMT https://ttlc.intuit.com/community/tax-credits-deductions/discussion/generally-if-you-are-a-resident-of-one-state-north-caro/01/415687#M52874 Karca 2019-06-04T20:51:44Z