Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jan 22, 2024 4:14:22 PM

North & South Carolina Taxes

I live in North Carolina and my office is in South Carolina. I work in the SC office 40% of the time and work from my NC home 60% of the time. Do I pay my state income tax to only one state or is there a way to claim 40% of my income to SC & 60% of my income to NC?

0 2 298
2 Replies
Expert Alumni
Jan 22, 2024 4:25:39 PM

Are you a W2 employee? What is listed in the state wages and withholding area of your W2? Your employer should be withholding taxes based on where you are physically working. You will file a Non-Resident South Carolina return (prepare first) and a Resident North Carolina return (prepare second). You will get credit in NC for taxes paid to another state.

 

Please see How do I file a nonresident state return? 

Level 15
Jan 22, 2024 5:09:43 PM

Q.  Do I pay my state income tax to only one state or is there a way to claim 40% of my income to SC & 60% of my income to NC?

A. There is a way  to claim 40% of your income to SC.  And that is how it should be done. 

 

You will have to manually calculate the amount (the 40%) that you allocate to SC.  But, you claim 100% of you income on your NC return.  You then claim a credit for the tax you paid to SC.  As a result there should be little or duplicate tax paid (sometimes the credit does not calculate as 100% of the tax paid to the work state).