Enter your W-2 in the federal section exactly as it appears. You will then file the NC return first as your nonresident state then you will file your SC return.
In general, your home state will tax all in come from all sources. What you will do is you will file a nonresident return for the states that you do not reside in, but you visit for work and earn money in. This state will tax the income you receive in that state. Then you will fill out your resident state, claiming a credit for taxes paid to the nonresident states on your home state return. You may or may not still end up owing money to your resident state depending on whether or not their tax rate is higher or lower than your nonresident state. If the non resident state had a higher tax rate than your resident state, your credit will be limited to the amount of tax you would have paid to your resident state. They will not give you a refund of the taxes you paid to the nonresident state.
Thank you! I work in NC but live in SC. One last question, on my W2 I paid in to NC and SC taxes. When I fill out the wage allocation, do I just add “non resident” for NC? Then it also asks my “NC income while a non-resident”. Not sure if that’d be zero or the full amount I made with the NC employer?
You mentioned that the income was divided between NC and SC on your W-2. Your NC income while a non-resident would be the amount that was allocated to NC on your W-2. The amount allocated to SC is considered to have been earned in SC.