Do I need to file residency in North Carolina, worked full year in South Carolina, owned full year a house in New Jersey, rented full year an apartment in North Carolina?

[itcimail]

North Carolina, rented an apartment full year 2015; South Carolina, worked full year 2015; New Jersey, owned a house full year 2015, but rented it for one month and personal use for 11 months; My Question (How to best file Residency?).

[TomD8]

If your permanent legal residence - your "domicile" - is in New Jersey, you are an NJ resident and all your income - wherever earned - is taxable by New Jersey.  The money you earned while physically working in South Carolina is taxable by SC.  NC considers you a non-resident for tax purposes "if you are a legal resident of another state" (http://www.dornc.com/taxes/individual/resident.html).  If you earned no income from physical work (or rental property) in NC, and you are an NC non-resident, you need not file an NC tax return.  Therefore - if I'm understanding your situation correctly - you should file (in this order):

1. federal tax return

2. non-resident South Carolina tax return

3. resident New Jersey tax return.

On your NJ return, you'll be able to take a credit for tax paid to SC on the same income.

[Tom4692]

You must pay taxes in the state in which you earn them.  If you are fortunate to live in a state that has reciprocity with neighboring or other states, then halleluia.  I am a engineering contractor.  I have worked in South Carolina for 4 years.  While working there, I rent a room.  I claim those business expenses on my federal taxes.  I pay income taxes to South Carolina on the money I earn there - and no taxes on other sources of income; e.g., retirement dollars.  I have lived in North Carolina for 24 years and have a house and property there.  North Carolina has reciprocity for those who pay South Carolina taxes.  But I pay North Carolina the taxes due on other income sources.  Complete your Federal tax forms first, then your South Carolina forms, then your North Carolina forms.  Be sure you review your completed taxes and make sure that your SC taxes are forwarded onto the North Caroline Forms.

[TomD8]

South Carolina and North Carolina do NOT have tax reciprocity.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2895760-which-states-have-reciprocal-agreements">https://ttlc.intu...>