Why am I showing SC tax due (on the top left) when neither I or my husband earned any income from SC in 2020?

[jenkinsonk2]

I am the only income earner, and I earned all my income in WA in 2020.

[SteamTrain]

You'll have to define your place of actual Domicile during 2020.

Did live in a home with the spouse in SC, but work only temporarily in WA (like a summer job), then return to SC?

Or , did you live in one state...then move to the other where you expect to stay for the foreseeable future (which way, and which states....from....to...?)

OR, are you in the military, and HOR is SC ?

details..details..details...

[jenkinsonk2]

I lived and worked in WA for the full year of 2020, my Husband lived in SC until June then moved to WA. We are staying in WA permanently. 

[JotikaT2]

Since your husband was a resident of South Carolina for the beginning of the year, he was considered a resident of that state until he moved to Washington, unless his intent was to leave South Carolina from the beginning of the year.

He would be considered a nonresident of South Carolina if he had a permanent home outside of South Carolina all year.  Please see the following for more information on the criteria used by South Carolina to determine if you are a resident or nonresident.

If you determine he was a resident for the first part of 2020, he will need to file a part-year South Carolina resident return.

[SteamTrain]

Well, you should be able to work thru the questions in the SC tax return, and indicate that there was zero income earned while in SC.   Until every scrap of the Federal tax return is filled in, the SC tax return assumes it is all SC income...then you go thru the SC (non-resident) interview and indicate none of the income is SC-sourced, as long as you husband didn't work at all in SC during 2020.

a)  Make sure you indicate that you are filing SC as a non-resident and using the SC Schedule NR .  For SC, a part-year resident (your husband) can file either as 1)  a full-year resident and take a credit for taxes paid to another state....or 2) as a full year non-resident, indicating what income was received while he was actually living there....the non-resident is the one you want to use, otherwise it may tag your own income in WA as being SC income.

b)  The SC direction for spouses where one is a SC resident and the other is not....they tell you also to file the SC tax return with the Schedule NR (non-resident) too.  That way you can indicate that none of your WA income is to be included as SC income.  BUT... If you happen to own any property you are renting out in SC, then income from that will be SC income, no matter what state you are living in.

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My SC sources:

1)  " What are the filing requirements for a part-year resident?

An individual who is a South Carolina resident for only a portion of the tax year may choose the filing method below that is the most beneficial: 

• Compute South Carolina tax as a South Carolina resident for the entire year. File the SC1040 including all federal taxable income and use the SC1040TC to claim a credit for Income Tax paid to another state. 
• Compute South Carolina tax using the Schedule NR. Include in Column B of the Schedule NR only the amounts that are taxable to South Carolina. Amounts taxable to South Carolina include all items of income, gain, loss, or deductions earned from South Carolina sources or while you are a South Carolina resident. File the SC1040 and attach the completed Schedule NR.  "

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2)   What is the filing requirement if one taxpayer is a resident of South Carolina and one is not?

If you file married filing jointly for federal purposes, you will also file married filing jointly for South Carolina purposes. If one taxpayer is a resident of South Carolina and one is not, file the SC1040 with the accompanying Schedule NR. Column A of the Schedule NR is the income from your federal return and Column B of the Schedule NR includes only the income earned while a resident of South Carolina or income earned from South Carolina sources."

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https://dor.sc.gov/tax/individual-income/faq