Why am I paying taxes on my income to North Carolina when I did not earn any income in North Carolina?

[meggilbsx7]

I earned all my income completely in South Carolina. Why is it subject to North Carolina tax?

[SteamTrain · Accepted solution]

Depends:

1).....IF you lived in NC during 2016, and worked in SC

2)...or if you are a college student with parents in NC who claim you as their dependent.

3)...or if you are in the military in SC but have an NC HOR...

then you have to file the NC tax return.

For situations 1&2, you prepare the SC nonresident tax return first...then you do the NC resident tax return..  NC calculates a tax on everything, but then allows a credit for whatever taxes SC kept on that nonresident tax return...so that could wipe out much of what NC charges.....but that depends on your total income situation, not just the SC wages.