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rojubel3
New Member

I worked in SC but lived in NC all year round. I had a second job in the state i live in. I own a rental house in SC. Why do i have to file for two states?

 
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DS30
New Member

I worked in SC but lived in NC all year round. I had a second job in the state i live in. I own a rental house in SC. Why do i have to file for two states?

It depends but you will need to file in both SC (nonresident) and NC (resident) if your income in SC meets the SC filing requirements.

For SC - According to the SC Department of Revenue, a nonresident individual only needs to file a SC nonresident state income tax return if the gross income taxable to South Carolina is more than the federal personal exemption amount (for 2016 the federal personal exemption amount is $4,050). So You will need to file in SC if your SC-sourced income (wages and rental) is greater than $4,050, then you will need to file an SC nonresident state income tax return to report your SC sourced income only.

For NC - You will need to file in NC because this is your permanent state of residence.

Since you are a permanent resident of NC but had wage income (and possibly rental income) from SC, then you will need to file an SC nonresident state income tax return (for your SC source income only) if your SC sourced income exceeds $4,050 in 2016. You will also need to file a NC resident state tax return (for all income from all sources including SC sourced income). You will get a state income tax credit in NC for any SC state income taxes that you paid on your nonresident SC state income tax return.

You will want to work on your nonresident SC state income tax return first. You will then take a tax credit from your nonresident SC state income taxes on your resident NC state income tax return. (Please note that you will only get a tax credit for your SC state income taxes up to the amount of NC state income taxes that would have been paid if the income was earned in NC).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits 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


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1 Reply
DS30
New Member

I worked in SC but lived in NC all year round. I had a second job in the state i live in. I own a rental house in SC. Why do i have to file for two states?

It depends but you will need to file in both SC (nonresident) and NC (resident) if your income in SC meets the SC filing requirements.

For SC - According to the SC Department of Revenue, a nonresident individual only needs to file a SC nonresident state income tax return if the gross income taxable to South Carolina is more than the federal personal exemption amount (for 2016 the federal personal exemption amount is $4,050). So You will need to file in SC if your SC-sourced income (wages and rental) is greater than $4,050, then you will need to file an SC nonresident state income tax return to report your SC sourced income only.

For NC - You will need to file in NC because this is your permanent state of residence.

Since you are a permanent resident of NC but had wage income (and possibly rental income) from SC, then you will need to file an SC nonresident state income tax return (for your SC source income only) if your SC sourced income exceeds $4,050 in 2016. You will also need to file a NC resident state tax return (for all income from all sources including SC sourced income). You will get a state income tax credit in NC for any SC state income taxes that you paid on your nonresident SC state income tax return.

You will want to work on your nonresident SC state income tax return first. You will then take a tax credit from your nonresident SC state income taxes on your resident NC state income tax return. (Please note that you will only get a tax credit for your SC state income taxes up to the amount of NC state income taxes that would have been paid if the income was earned in NC).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits 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


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