How a SC resident handles taxes paid to MI

[geomcvicar]

We are a full-time resident of SC however have some W2 and 1099R income which was reported and taxed as MI income.  We will be filing MI non-resident taxes and they will be refunding all of the taxes paid.  The TurboTax SC return indicates the following: If you paid taxes to a state other than South Carolina during the year, you may receive a tax credit. That way, you won't be taxed twice on the same income.

TurboTax then prompts me for "Double -taxed Income" and "Tax paid to Michigan on double-taxed income".

How do I know if this is double-taxed income and how much to report as taxes paid to MI? 

[DaveF1006]

First of all, complete your Michigan return first before you complete your SC return. Always complete your resident SC state last. if you have already started, delete the two state returns and start over so that the information will correctly flow from one state to another.

1. When you begin your Michigan return, you will begin allocating your Michigan income. First page will show the total of your W2 wages, here you will indicate what portion of those wages were earned in Michigan. The remainder should be allocated to SC.
2. the next screen just ignore. Continue past it.
3. it also may ask you what 1099R income is Michigan income. Keep in mind, if your 1099R was from a qualified retirement plan, that income is not taxed in Michigan and the allocation may not appear in your Michigan return.
4. When you begin your SC return, all the information you entered into your Michigan return and federal return should flow into your SC return to where you do not need to make any entries.