My W2 form is showing state income for SC ( where I live) but the income is from NY. do I need to get the w2 corrected?

[bwoods330-verizo]

The amounts withelf look like nNYState and local income, as well as  SDUI but uner #15 is says South Carolina with an ID number.  How do I get thkis corrected

[PaulaM]

You'll have to file a NY nonresident return to pay or receive a refund if applicable. Then SC will give a credit paid to another state on its return. Complete the nonresident return first. 

New York State

[bwoods330-verizo]

thank you, the problem is I don't know which state the tax was paid to, New Yok state where the income is from or south Carolina where I live now.  The person preparing my taxes says it looks like it was paid to South Carolina, when it really should have been paid to NYS.  I can't get an answer from the place that issued the W2 as my former place of employment went bankrupt and these are ocassional checks we receive.  Its not a lot of money but I want to be sure its reported correctly

[DMarkM1 · Accepted solution]

With SC in box 15 the income and withholding was reported to SC.  There will be no correction; the W2 is reporting what the employer already did.  On your tax return, however, you get to pay the right taxes to the right states.  

NY, your non-resident state, only taxes NY source income.  SC is your resident state and taxes income no matter where it is earned.  However, you can claim a credit on your resident SC return for taxes paid to another state to mitigate the double taxation.  

As @PaulaM stated you will need to file a non-resident NY return to report the income earned in NY and since there was no withholding you will likely owe a tax there.  Once you complete the NY non-resident return take note of the income taxed and the NY tax liability.  Those are the numbers TurboTax will use to help you claim a credit on your resident SC return. 

The SC withholding and the credit for taxes paid to another state will reduce any SC tax you may owe and possibly yield a refund depending on your other income and withholding amounts. 

Here are the steps to generate the NY non-resident return.

1. In the "My Info" section
2. Scroll down to "Other State Income"
3. Answer "Yes" you earned income in another state
4. Select "NY"
5. Continue
6. After entering your income and deductions in the federal interview
7. Start the NY interview
8. Complete/Verify the residency questions
9. Next will be the income questions where you will allocate the W2 amount that belongs to NY
10. Any other non-NY income sources be sure to allocate zero "0" to NY
11. After completing the NY interview then you can work the SC resident state interview
12. In the credits section is where you will find the credit for taxes paid to another state