Do I need 2 state TT apps? have SC. LLC owners. Wife moved early 2018 I moved 12/2018. Add't I started remote W2 job in Penna w/ PA w/h taxes. Business move 12/31/2018.

Anonymous · ‎June 6, 2019

Add't notes:

Business domestication move 12/31/2018 - Now official PA small business. I moved to Penna in December 2018 (officially) , however ran the business in SC and also worked W2 job remote in Penna. Penna W2 job took out PA taxes. The W2 job was primarily to get benefits (and get off Obamacare) as a person with cancer.

Do I need 2 copies of TT state - one for each state? I have one state which comes with TT Deluxe and have to purchase one for TT Business.

Also.. the stated address for my wife is the Penna address. Since I am in Penna officially 2019, do I indicate a separate state as well (like my wife, who moved part way through 2018). Her income is all related to the LLC - which did not relocate / leave SC until Dec 31, 2018.

Products using: Turbo Tax Deluxe Windows ; Turbotax for Business Windows (due to LLC requirements experienced in the last few years... )

thanks in advance...

DanielV01 · ‎June 6, 2019

Yes, you need two state returns for your Personal Return. It looks like your business return only requires South Carolina unless you had business activities in PA (not the W2, that's only for your personal return).

The technicalities of your residencies are complicated. To simplify them based on the merit of the situation, file a South Carolina resident return and a PA nonresident return. Because of PA laws, the telecommuting job for the PA company is considered to be taxable in PA. SC will provide you with a credit for the tax you pay to PA on that income.

Otherwise, since your LLC income is derived from SC and you were still living in SC until the relocation, the merits say that you can claim all of the income as SC resident income, and only pay PA tax on the telecommuting income. You will need two state returns on the Personal return to do this. But the business return will only need a SC final LLC return for the relocation.

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View solution in original post

DanielV01 · ‎June 6, 2019

Yes, you need two state returns for your Personal Return. It looks like your business return only requires South Carolina unless you had business activities in PA (not the W2, that's only for your personal return).

The technicalities of your residencies are complicated. To simplify them based on the merit of the situation, file a South Carolina resident return and a PA nonresident return. Because of PA laws, the telecommuting job for the PA company is considered to be taxable in PA. SC will provide you with a credit for the tax you pay to PA on that income.

Otherwise, since your LLC income is derived from SC and you were still living in SC until the relocation, the merits say that you can claim all of the income as SC resident income, and only pay PA tax on the telecommuting income. You will need two state returns on the Personal return to do this. But the business return will only need a SC final LLC return for the relocation.

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

Anonymous · ‎June 6, 2019

Thank you Daniel! you really clarified a rather "muddy" situation, although never intended as such. such is the best laid plans of mice ......... Cheers and thanks again! Very much appreciated!

DanielV01 · ‎June 6, 2019

You are welcome. And good luck in PA.

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Do I need 2 state TT apps? have SC. LLC owners. Wife moved early 2018 I moved 12/2018. Add't I started remote W2 job in Penna w/ PA w/h taxes. Business move 12/31/2018.