North & South Carolina Taxes

[pcd246]

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?

[CatinaT1]

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? 

[Hal_Al]

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).