FL resident hired and working remote in SC

[dboulware34]

I lived in FL all 2023 working remotely for SC company. They took out SC taxes (which I did have them eventually stop) but I'm confused as to how to file this with Turbotax as it is still recognizing me as a nonresident and the income on my W2 is pre-filled as SC income although I haven't physically been in SC in almost 2 years. How do I get the money (on my W2) that was paid to SC? First of all...am I right in thinking that money SHOULD be refunded since I was hired as a remote worker never having worked physically in SC and FL has no state income tax?  The way Turbotax words it makes it confusing because it says "earned" in SC. Do I just override that amount that was pre-populated from my W2? With remote work so prevalent, you would think this question would already be incorporated. It only gave me a partial refund.

[Vanessa A · Accepted solution]

Yes, the money should be refunded to you.  Yes, you will just override the amount that was prepopulated.  You will need to change the amount of your income for SC to $0 and leave the taxes withheld as whatever the amount is that was withheld.  This will allow you to get a refund of all the taxes withheld in error.

Since you worked in FL, the amount earned in SC is $0.  

[dboulware34]

Thank you! And of course in the Subject I meant to say "FL resident hired and working remote for a SC company". Does the same apply for NC? I notice the wording is a little different on the NC return...it utilizes the word "sourced" instead of "earned". My husband worked in NC with almost the same situation. It took us months to even find out they should never have been deducting these state taxes. It will be much easier next year because we just simply won't have to file a state return!! 

[DawnC]

It works the same for NC - if he was remote working in FL.   If he went to NC and did work while physically present in NC, he would owe the NC tax.    If he worked remotely, from FL for a NC company but never went to NC - he pays no tax to NC.   Out of State Employers    'Sourced in' and 'earned in' means the same for these purposes.  

[dboulware34]

Thank you so much! It was a pretty significant amount of money! So glad we can both get it refunded. I thought it was just going to be money lost!