Part Year Resident Tax Return NC/SC

[pkmeas]

1/1/2019 - 7/1/2019(181 Days) -> Lived in NC, Worked in NC

7/1/2019-12/31/2019(184 Days) -> Moved to SC, Worked remote for same company in NC

It looks like employer did not divided up the wages on my W-2 in box 15 & 16. Does this mean i need to get my W-2 amended?

I believe i'm suppose to file as a part year resident for both states. I'll claim to be:

1) Part Year Resident of SC

2) Part Year Non-Resident of NC

When doing my NC state return, i get to wage allocation and put all of the $$ earned by my employer as PY NC Income. The next step prompts me to split how much income earned as an NC resident versus a SC resident but no boxes appear or prompts show up? 

Any help would be greatly appreciated thanks!

[MaryK4]

In this case, it seems your company did not change the state withholding- the amounts issued on the W2 are the amounts that are actually sent to the state tax department so it is not as simple as just changing the amount on the form. You will want to make sure they are doing the withholding for 2020 to South Carolina.  When you are completing your taxes for 2019, on the North Carolina return, you will have to allocate for the Part Year resident the amount you earned while you were a North Carolina resident.  This will be the amount you are taxed by North Carolina so you should get a pretty good refund. 

For South Carolina, part year resident have two options- TurboTax will help determine which is better for you- but if you have questions as you are working on the tax return, you can post again.

An individual who is a South Carolina resident for only a portion of the tax year may choose the filing method below that is the most beneficial: 

• Compute South Carolina tax as a South Carolina resident for the entire year. File the SC1040 including all federal taxable income and use the SC1040TC to claim a credit for Income Tax paid to another state.  
• Compute South Carolina tax using the Schedule NR. Include in Column B of the Schedule NR only the amounts that are taxable to South Carolina. Amounts taxable to South Carolina include all items of income, gain, loss, or deductions earned from South Carolina sources or while you are a South Carolina resident. File the SC1040 and attach the completed Schedule NR.  

[pkmeas]

@MaryK4 Thank you for your reply! When going through the North Carolina section in TurboTax, I get to the Wage Allocation section. I presume this is the section you are talking about verifying how much was made as an NC resident versus non-resident? 2 questions:

1) As shown in image 1 below, the first row is imported from The Federal W2 section and whenever i change it, it reverts back to the original amount when continuing into a later step. For example i change the first row to X amount made as NC resident and in the drop down select NC Resident Income. Then in the next row, set Y amount and select NR NC Source Income. When i hit continue my tax due appears as more because when i complete the section and go back to edit it, the first row is now X+Y and second row is Y, so it appears I received more income then i actually received.

2) Regardless if I left it as is or changed, when i hit continue i get a prompt that says to use the following screens to adjust resident, part year and non resident income. but no prompts appear. I feel as if the second image was suppose to become before the 1st, and that the 1st is what the second image is referring too. See image 2 below.

[MaryK4]

In your particular case, you will keep the first screen as it is on the W2, the next one will have the Part-Year and Nonresident Income, then the Part-Year and Nonresident Income Allocation.  On this screen, indicate the NC Resident Income amount and leave the NC Income While a Nonresident blank

@pkmeas

[pkmeas]

@MaryK4  After hitting continue on the screen below. no prompts appear for me to enter such information. It just takes me back to the general state tab to continue with my return. I have tried to call someone and they tried to send to talk to a live CPA for extra $$ but I don't think i need one if i can get this to work.

[MaryK4]

I just ran through the program checking the entries  and found an easier way-  For North Carolina, leave the first entry as the default PY NC Source Income and DO NOT ADD the second line.  Go ahead and continue through the return, there should not be any other adjustments needed.  When you get to South Carolina, look for the South Carolina Residency Information and Select Resident OR Part-Year resident filing as a resident (see below).  You will still need to file the return, but you will not have any tax due. 

Let me know if you have questions.

@pkmeas