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BEANA6
New Member

Why is my NC unemployment showing in South Carolina as income?

I live in North Carolina and worked part of 2017 in South Carolina. I drew unemployment in North Carolina. Why is the North Carolina unemployment showing on the South Carolina Taxes?

1 Best answer

Accepted Solutions
DanielV01
Employee Tax Expert

Why is my NC unemployment showing in South Carolina as income?

Your unemployment is not taxed in South Carolina.  However, all of your income is used to determine South Carolina tax.  South Carolina figures out your tax by calculating how much tax you would pay on all of your income, and then prorating that amount on the percentage of income you receive from South Carolina.  Even if the unemployment were from South Carolina, you still are not taxed on it in South Carolina, because you are only taxed on unemployment where you live, not from where you might be receiving it.

So, South Carolina doesn't tax your unemployment, but all of your income is used to determine South Carolina nonresident tax.

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1 Reply
DanielV01
Employee Tax Expert

Why is my NC unemployment showing in South Carolina as income?

Your unemployment is not taxed in South Carolina.  However, all of your income is used to determine South Carolina tax.  South Carolina figures out your tax by calculating how much tax you would pay on all of your income, and then prorating that amount on the percentage of income you receive from South Carolina.  Even if the unemployment were from South Carolina, you still are not taxed on it in South Carolina, because you are only taxed on unemployment where you live, not from where you might be receiving it.

So, South Carolina doesn't tax your unemployment, but all of your income is used to determine South Carolina nonresident tax.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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