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Gtg045y
New Member

Consultant working in multiple states - what to put for NC other state income and tax worksheet

My husband is a consultant so his W2 has 3 states.  We live in SC, but the consulting company he works for is based in NC and he supported clients in CA and UT, so his W2 has NC, CA, and UT, even though SC is our primary residence (so we have 4 state returns since I work in SC).  In filling out the NC return on the Out of State Tax Credit Worksheet, it says that non-residents (which we are non-residents) are not eligible for this credit and to leave A and B on that worksheet blank.  Every time I do that though, it says it is an error and it will not let me proceed.  I then tried to enter the actual amount of income we earned in other states and the taxes we paid to other states and it made it such that  we received a large credit from NC and 100% offset that credit with amount due in SC.  This just doesn't seem right.  What should I be entering on that worksheet?  I completed all the other states with no issues, this is the only remaining "error".  Thanks! 

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1 Reply
DMarkM1
Expert Alumni

Consultant working in multiple states - what to put for NC other state income and tax worksheet

Yes most likely you are getting the error as NC is a nonresident state and you are attempting to claim a credit for taxes paid to another state.  You should not be completing the "Other State Tax Credit" topic for NC.  Go back and delete all entries in that NC topic interview.  

 

NC is a nonresident state for you.  SC is the resident state and is the state where you would complete the "Other State Tax Credit" topic to get a credit for the taxes paid to the nonresident states.  You would need from each of the nonresident returns, tax paid and income taxed, including NC. 

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