I live in South Carolina, but work in Georgia. How do I file my income between the two states?

[mcclurebp]

Do I need to file my W-2 income from Georgia in my South Carolina return?

[AnnetteB]

Yes, your GA W-2 income will be included on your SC tax return because you are a SC resident. 

You will file a SC resident tax return and a GA non-resident tax return. 

The SC return will tax all income, both from GA and from SC.  However, there will be a tax credit allowed for taxes paid to another state (GA) on the SC return. 

The GA return will tax only the income that was earned in GA.  Any SC income will not be included on the GA return.

To be sure that the states will handle the income allocations properly, please double check your information in the Personal Info section of your return for both you (and your spouse if applicable).  Be sure that you are listed as resident of SC.  Also be sure that the Personal Info > Other State Info section shows that income was earned in GA. 

Then, when you are finished with all the entries for your Federal return and start working on the state returns, choose your non-resident (GA) state return to complete first.  This will allow the resident (SC) return to get the information it needs for the tax credit for taxes paid to another state. 

[ROGSHMAR]

I don't recall h&r block telling me this could be an issue. Now my check is being garnished from the S.C. Department of Revenue.

[TomD8]

@ROGSHMAR --

Regardless of what HR Block may or may not have told you, @AnnetteB 's answer is 100% correct.