Is Tax Paid to South Carolina showing wrong amount for my North Carolina return?

I work in SC, live in NC. Turbotax is showing Tax paid to SC is $3,696 but my W2 shows state income tax paid $5,178. Should I adjust turbotax's number?

Scratch this question. I finally found the answer on the NC Department of Revenue website. Since I am getting a refund from SC of $1,481, the credit I list on my NC tax return is the total tax paid less the refund received. Hope this helps others with 2 state filings.

587

Level 15

Jun 4, 2019 5:02:00 PM

Absolutely correct.

Max allowed credit is the taxes that SC "kept" (i.e. net after SC refund)

A second qualification of the amount, is that the credit allowed cannot exceed the % that NC would-have charged for the same income. Thus, if the non-resident state taxes those wages at 6%, while NC taxes at 5%, then the credit is only for up-to the 5% that NC would have charged.

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Is Tax Paid to South Carolina showing wrong amount for my North Carolina return?