I reside in texas, telework to SC. turbotax is saying SC residency is what fits...why?

[acierno1]

Just got off the phone with SC dept revenue. they indicate that since I reside outside of the state (I live in Texas) and telework into a VA in South Carolina, I should not be paying full SC income tax, but my employer deducted from paycheck as if I still lived there...in other words, I overpaid SC taxes according to the SC revenue service. Turbo tax has me fill out the NR schedule for non resident, but then actually states "looks like SC residency is best for you". so even though I am filling out the NR schedule and even though the SC revenue person says employees (feds) over deducted from my paycheck, it is not giving me the correct refund....(1) how to tell turbotax NOT to consider me a sc resident (it seems not too, using the NR schedule, but then it had that statement...(2) get the correct sc refund

[BillM223]

"but my employer deducted from paycheck as if I still lived there" First of all, ask them to stop doing that. Since your employer has already paid your withheld taxes to SC, the only way to get it back is to file a nonresident return for SC. Unfortunately, since it is now March, you will have to do the same thing for tax year 2022. 

"then actually states "looks like SC residency is best for you"" If the mailing address that you give is not in SC, I don't know why TurboTax would say that. It's true that since you have SC in box 15 of your W-2, TurboTax will want to file an SC return for you, but you get to choose resident, part-year, or nonresident.

"it is not giving me the correct refund" How is it not the correct refund? Are you saying that you are not being refunded your entire state withholding?

[acierno1]

Yes, i told them when i moved...and again last year...the Federal HR system. enough said.

I have and do file a NR SC return, but it is calculating the same $ figure as if I were filing a resident return. SO per my conversation with the SC revenue dept AND the fact that when i do the state tax return as a resident and non resident it shows the same tax due/refund figure, I can tell it is not refunding enough of what I paid...in other words, it was deducted from my paycheck as if I lived in SC, and the SC NR form is not correcting that.

[BillM223]

Can you see your forms (yes, if you are using the CD/download version or have paid for the Online version, otherwise all you can see is a summary)? Do you have a Schedule NR? This schedule should be completed for nonresidents like yourself.

Is line 5 on your SC1040 something other than zero? If so, then you have not told TurboTax that none of your income is from SC. So, insist to TurboTax that you want a non-resident return for SC, and then tell TurboTax that you have no SC source income. Then you should see a zero appear on line 5 on the SC1040.