Tax filing for three states - NJ, NC, SC

[taxhelpplz]

We are couple with one child. I myself worked entire 2019 year in NJ. My spouse lived in SC for 1st half of 2019 and 2nd half of 2019 lived in NC, but worked in NC. Spouse lived in SC from Jan 1, 2019 to June 29, 2019, then lived in NC from Jun 30, 2019 to until now.

Questions -

1. Shall we file taxes for SC state as well?

2. If filling for SC state, which forms should I choose? 

3. Myself living in NJ, shall I file for SC tax as well?

4. Which state should I start with first?

[JotikaT2 · Accepted solution]

1. Yes, you will file a return in South Carolina as well.  You will file as a nonresident if your permanent residence is outside of South Carolina all year.

Please the attached if this is not the case and there is a chance your spouse South Carolina is a place she intends to return to.

South Carolina filing requirements

2.  It depends.  If your wife's permanent place of residence is in North Carolina, you will file Form SC1040 and Schedule NR Nonresident Schedule.  If you determine to file as a part-year resident, you will file SC1040, SC1040TC to claim credit for taxes paid to another state on the same income (here it would be the NC return), and Schedule NR.

3.  It depends.  Again, it will depend upon how you file your Federal return and if you file as Married Filing Joint.  If you use this filing status, you will have a joint return filed in SC, but will only report the actual income earned in SC on the NR Schedule.

4.  Always start with the nonresident tax return first.  Prepare your resident state tax return last.  

The order will depend upon your answers to the above questions.  Where do you and your spouse consider you "home" to be?  If it's New Jersey, then that should be your resident state.  If it's North Carolina, then that will be your resident state.  

[Anonymous]

was she living in NC and SC while on temporary work assignments or was NJ her domicile

from NJ instructions

Domicile. A domicile is the place you consider your permanent home – the place where you intend to return after a period of absence (e.g., vacation, business assignment, educational leave). You have only one domicile, although you may have more than one place to live. Your domicile does not change
until you move to a new location with the intent to establish your permanent home there and to abandon your New Jersey domicile. Moving to a new location, even for a long time, does not change your domicile if you intend to return to New Jersey. Your home, whether inside or outside New Jersey, is not
permanent if you maintain it only for a temporary period to accomplish a particular purpose (e.g., temporary job assignment)

this is crucial 

[taxhelpplz]

Is it correct to say?

my spouse domicile is NC and mine domicile is NJ.

Also as per https://dor.sc.gov/tax/individual-income/faq 

Do I need to file a South Carolina return?

If you are a South Carolina resident, you are generally required to file a South Carolina Income Tax return if you are required to file a federal return. If you are a nonresident or part-year resident, you are generally required to file a South Carolina return if you work in South Carolina or are receiving income from rental property, businesses, or other investments in South Carolina. 

Since we didn't earned any income from SC, then it means we don't have to file SC tax returns. Please confirm.

Spouse works in NC and I work in NJ.