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dreeg29712
New Member

I work in north carolina but live in south carolina. Do I have to file a state return in south carolina, my state of residency? I have no income in my resident state.

 
4 Replies
SteamTrain
Level 15

I work in north carolina but live in south carolina. Do I have to file a state return in south carolina, my state of residency? I have no income in my resident state.

Yes...Absolutely you do.

You have to file a Non-resident NC tax return for just the NC wages....then after that is done, you file a SC Resident tax return which taxes everything.

.................SC wants to see that you actually paid taxes to NC, 

...........................and then, when  SC calculates a tax on ALL your income...from everywhere (this includes bank interest and dividends, everything else too).  Once SC calculates their tax, then they will allow you to take a credit for part or all  the taxes you had to pay to NC.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
kmendonca813
New Member

I work in north carolina but live in south carolina. Do I have to file a state return in south carolina, my state of residency? I have no income in my resident state.

What do you mean by they will give you a credit? Will I owe South Carolina state by not having paid taxes to them through my income?

DMarkM1
Expert Alumni

I work in north carolina but live in south carolina. Do I have to file a state return in south carolina, my state of residency? I have no income in my resident state.

Possibly.  If you did not pay enough taxes for your income then you will owe SC.  As @SteamTrain mentions SC will give you a credit to mitigate the SC taxes on income that was taxed by NC. 

 

When you complete your non-resident NC return be sure to take note of the income that was taxed by NC and the tax on that income.  You will use those numbers to complete your SC resident return.   

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TomD8
Level 15

I work in north carolina but live in south carolina. Do I have to file a state return in south carolina, my state of residency? I have no income in my resident state.

@kmendonca813 --

 

In TurboTax, be sure to complete your non-resident NC return before you do your home state SC return, so that the program can calculate and apply your credit correctly.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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