STATE HELP! Lived in NC till Aug then move to SC. Had SAME JOB in SC whole year. W-2 with SC taxes only, bank interest, alimony received and 1099G for State refund

[BothCarolinas]

NEED SC/NC STATE HELP. Worked same job in SC all year. Lived in NC from Jan-July then moved to SC permanently. SC lets me choose to file RES or NONRES. Having TT issues applying monies to each refund please explain in detail if able thank you 

[SteamTrain · Accepted solution]

In the Personal Info section...you indicate you were a SC resident on 31 Dec....and that you lived in another state in 2017 (NC, and the date you moved)

That will trigger the part-year SC and part-year NC tax returns.  Yes, you will be filing both states this year too.

Don't even look at either of the state tax returns until you have EVERY SCRAP of Federal income, Deductions & Credits entered in the Federal section.  Then, during each part-year state tax section interview, you will need to allocate your income, according to what state you lived in at the time you received that income.

Expect the state income allocations  to be confusing and plan to take a full month (or more) working on it until you understand the results.  Print out the state parts every week, and then go back in and edit your state income allocations as you figure out what you did wrong.

[BothCarolinas]

Thank you for commenting. I have done all of what you stated and the state returns still don't seem correct. I also need to understand the resident and nonresident piece of this as SC allows you to choose.

[SteamTrain]

Ahhh....I'm only am familiar with the NC part....I'l look at SC later this morning (if no one else with actual SC experience comments)

...and I probably exaggerated on the One-month....if you only have salary, and Interest, and no Capital gains, no Dividends from stocks or Mutual funds, and no cash/Self-employment income.

You should be printing out the NC part-year file to see what's there, NC uses ALL your federal income, but chops down what is taxed by NC by a decimal on line 13....which ,for a constant monthly wage, and $20 of interest...should be around 0.55-to-0.75.    That value is set by your income allocations during the NC interview

[BothCarolinas]

Thank you for your help!

[BothCarolinas]

I started to figure some of that out after 10 tries putting them both through the turbo tax lol it's complicated! I got it to work using filing SC as nonresident  but still not sure if it's right. The other way just gives error messages so far. Thank you again I really appreciate the help! I'm hoping not to lose a part of my refund because I don't get the credits  right. 🙂

[SteamTrain]

OK...I looked at the SC entry...

For your situation, and the SC selection you would choose.

....SC Resident or Part-Year Resident filing as Resident

You need to do this because your Job site itself was in SC all year long, thus the entire job salary is SC-taxed.

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Doing the income allocations properly on the NC tax return, incurring taking a credit for taxes paid to SC (but only the time you were living in NC)...ends up as a nightmare.even having done NC tax situations for a number of years...I'm having trouble  getting it right....I think I have it now..but it might take me a few days to make sure.

It's easier if you worked in NC for for the time you lived in NC, and worked for a new employer in SC after you moved to SC such that you actually get two W-2 forms....One NC taxable, one SC taxable, and not cross-state tax problems