I live in SC, work in NC. SC return asks for my income while I've lived there, saying I owe tax on it. Where on NC return do I get a credit for this to avoid double taxation?

[DS30]

If SC is your state of residence then you would get an NC tax credit for NC taxes paid on your NC sourced work on your SC return only. You would not get a SC credit on your NC nonresident return.

[cmobrien01]

Thank you for your response.  How do I go about getting the NC tax credit then?  Is that automatically added into my SC return or do I have to go somewhere for it?  When I do my SC return, it asks me for income I earned while I was a resident of SC.  I entered the portion I earned in NC while I lived in SC and it says I owe taxes on that to SC now.  Doesn't that essentially mean that I am being double taxed?

[DS30]

In a way yes but you are getting a credit in your home state for taxes paid to other states.

[DS30]

You will be taxed on your wages both where they are earned (NC) and in your home state (SC). However, you will get a tax credit for the NC taxes (nonresident state) you paid on your SC tax return (resident state). This is how the states avoid double taxation by allowing a state credit in your home state. Towards the end of the state information, you should see a list of other state tax credits (screenshot). NC is not listed, you can add the NC state tax credit here. (Just remember that you will not get a tax credit in your nonresident state for taxes that you pay in your resident state)

You will need to file as non-resident for NC (for your NC source income only). You will also need to file a SC resident state tax return (for all income from all sources including NC). You will get a state tax credit in SC for the NC state taxes the your paid on your nonresident NC state tax return.

You will want to work on your non-resident NC state tax return first. You will then take a tax credit from your non-resident NC return on your resident SC state tax return. (Please note that you will only get a tax credit for your NC taxes up to the amount of SC taxes that would have been paid if the income was earned in SC). 

Just follow the TurboTax guide when working on your states (remembering to do your non-resident state return first) and TurboTax will do all the calculations for the credit to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

https://ttlc.intuit.com/replies/3300797

[cmobrien01]

Thanks again.  I guess my issue is just that TurboTax isn't doing a great job guiding me through this situation.  I guess that my main question on the the SC return, is the tax credit for NC already factored in or do I have to enter it somewhere?  What I have done so far is done my NC return (I didn't list anything about SC at all), I entered the information on my SC return saying that while I was a resident I paid XXX amount to NC.  After that, the amount I owe SC goes up significantly.  But I don't see anywhere for me to enter a credit, leading me to think I need to enter it somewhere.