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I live in South Carolina but work in north Carolina, I needed to file for both states

Did I need to file in north Carolina also
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5 Replies

I live in South Carolina but work in north Carolina, I needed to file for both states

Yes, as long as your total yearly income (that includes everything)  was above the NC-Limits for filing.

The NC filing requirements table is on this page:

http://www.dornc.com/taxes/individual/filing.html

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The procedure for you, if you were required to file as an NC Nonresident...would have been to prepare your NC Non-resident tax return first, and then prepare your SC resident tax return after that.  NC taxes just your NC job income and calculates a tax 

........and then AFTER that, you work on the SC resident tax return, which calculates a tax on ALL your income from everywhere.....including the NC wages....but then SC allows you to take a credit for the taxes you let NC keep.  But the NC Nonresident tax return has to be done first to calculate that amount.

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

I live in South Carolina but work in north Carolina, I needed to file for both states

Thank you for that response. What if you lived in North Carolina for january 2019 and then moved to SC but, continued to work in NC? Do you only file as a resident in SC that we lived in for 11 months and a non-resident in NC when filing? Thank you.

 

I live in South Carolina but work in north Carolina, I needed to file for both states

best to just purchase both the NC and SC state forms from TT ... then just follow the questions asked.  The benefit of TT is that it asks all the right questions to guide you to the right way to file.  TT will ask if you lived in the same state all year or moved at some point and when did you move.   it will then use that information to correctly calculate your return.

 

advise: don't over think it (that is what you are paying TT for - to do the thinking for you)  🙂 

 

 

I live in South Carolina but work in north Carolina, I needed to file for both states

@Lindsay55541     Well, it's probably not quite that easy...but TTX certainly attempt to make it so.

 

You enter your move from NC-to-SC in the "My Info" section if you are using the Online Software  (Personal Info section with the desktop software).  You do that as a part of editing your own details.....and if you have a spouse, you do it for the spouse too...since spouse's don't always move...there are some that maintain separate state residences for a few years.

 

Indicating the move will trigger the Part-Year tax return for NC.  For NC, the part-year also includes the nonresident tax return too for that part of the year you worked in SC.     BUT...SC does things differently, for part year residents of SC, you will have to choose whether to file as a full-year SC resident, or as a full year Non-resident.

 

Don's start either state's tax return until you have every scrap of information entered in the Federal section.  And I mean every scrap......because you will need to break out what sub-portion of the Federal income, is NC income,     

 

For NC , All your income during January is NC PY income. Work income, dividends, interest, Investment income. (yep, you'll need your monthly records).  Then the 11 months of work income is also put in as NC income as a nonresident (there are separate columns in the software to allocate those amounts). 

 

Then for SC, as a  part year resident of SC, you will have to choose whether to file as a full-year SC resident, or as a full year Non-resident.  IF done as a Full-year SC resident the entire year's income is used to calculate a tax, and then they allow you to take a credit for the taxes you paid to NC for that one month of January     OR...you file as a full-year non-resident and just report all the income you received while a resident of SC for 11 Months.  I have no idea which works best.

 

For what SC says about that, see the Part-Year info on page 6 , rt-hand column of:

  https://dor.sc.gov/forms-site/Forms/IITPacket_2018.pdf 

 

Plan on spending 3-4 weeks working on those allocations....it may be confusing, and you may need to rework the allocations several times before attempting to file.   IF it gets too hard to figure out...get a local tax pro to do it this year for you

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

I live in South Carolina but work in north Carolina, I needed to file for both states

with all due respect, getting a professional involved and paying them is probably more than the will be saved in taxes than by just following TT's questions and responding appropriately.   

 

there is no dispute that the NC tax forms are be completed first.   

 

Whatever is paid to NC becomes a credit to SC. 

 

if your joint income is in the mid $30,000 range, all the tax will be paid to NC and close to nothing will be paid to SC in any event - regardless of how many months you lived in SC in 2019.  Above that figure SC marginal rate is higher than the NC marginal rate, so something will be due to SC. 

 

 

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