Live and work in different states

3 replies
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Hello all,

I am single with no dependencies and I am resident for tax purposes.

During 2020:

January-July: I was working and living in North Carolina.

August-December: I was living in South Carolina but my job is/was in Illinois. (Due to COVID I was working remotely)

Do I have to file taxes for South Carolina? Is my Illinois income taxable in South Carolina?

In turbotax, depending on my choices and the input I give it either says SC refund 0$ or SC tax due 800$. In particular on state taxes for NC in "Summary of Taxes Paid to Other States" I add Illinois, but then it says "Enter the following information for income you earned while a South Carolina resident that was taxed by both Illinois and South Carolina." And it asks for "Double-Taxed Income While a Resident of South Carolina" and "Tax Paid to Illinois on Double-Taxed Income". I am not sure if my income from Illinois is double-taxed. What is a double-taxed income? My income comes from Illinois and I pay state income tax in Illinois, so I am not sure if I need to pay taxes in South Carolina as well.

Thank you for your help!

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Hal_Al

Level 15

You employer should not have withheld IL state tax, since you did not physically work there. You need to file an IL non resident return to get a refund.

You file part year resident returns for both NC & SC. Your "IL income" is taxable by SC.

spc92Author

Level 2

Thank you for your response!

Yes, indeed I will file a non resident for IL and part year resident for NC and SC.

However, I believe my employer in IL have withheld state tax. According to my W2 (for my job in IL) the "state income tax" is >>0.

Given that I have paid taxes to IL I still need to pay taxes for SC? I read online that if your income is taxable to one state (IL) and is also taxable to another state (SC) then I might be eligible for tax credit so that I do not pay the same taxes for the same income in two different states.

Thank you!