Live in NC. Office is in SC. W2 shows AZ. Which state do I use and claim where I made income?

[CarolynM · Accepted solution]

If you worked in South Carolina and live in North Carolina, you need to file and pay taxes in both those states. You will claim the income was earned in South Carolina because that is where your office is located.

Unless you actually performed work in Arizona, you do not need to pay taxes there. You need to file a tax return to receive a refund for the taxes mistakenly withheld on your behalf.

To insure you receive proper credit for the taxes paid to other states, you should prepare your state tax returns in this order: Arizona, South Carolina, North Carolina.

For more information, follow these links:

https://www.ncdor.gov/taxes/individual-income-tax

South Carolina FAQ