I live in SC but work in NC, On the state filing under Part-Yr/Nonresident Wrksheet Line 4, Col C: Taxable State

[ErnieS0]

Are you referring to the state refund on your North Carolina nonresident return? That would be nonresident income from NC sources if a NC refund and $0 if a South Carolina refund.

A North Carolina refund would be subtracted later.

[terrirorie2017]

So, if I work in NC and live in SC.  But I had to pay 2020 NC state tax, does "0" go in the space for Line 4 Column B on the NC state return?

[AmyC]

Zero is for income not from NC. Line 4 column B is for taxable refunds on D400 sch PN. That would be a zero. If this is not what you mean, please keep reading.

Your resident state taxes all income but gives a credit for income taxed by another state. You are required to file NC as you earned income there. See NC nonresidents.

Please carefully follow these directions. You will need to prepare the states in a special order. You may need to delete both states and begin again.

1. First, prepare your non-resident NC  return. This creates your tax liability for the non-resident state. How do I file a nonresident state return? As you go through the Wages Allocation screen, you will mark that your income is NR NC Source income. Other income earned like bank interest and dividends are taxable to your resident state. Put zeroes in the NC column for those things.
2. THEN prepare your resident stateSC return and it will generate a credit for your income already being taxed in the non-resident state.
3. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.