live in one state, work in another, do i owe tax in the state I made no income in?

i live in one state (south carolina) and work in another (north carolina). I made no income in the state that I live in but it says that i still owe a very very large amount of tax??? Also this did not happen last year, owed nothing in SC. Im confused is that right or did I enter something wrong?
    You most likely need to file an SC return.

    The normal rules for interstate taxation are -
    --- you file a non-resident return for the states where you worked but did not live, reporting only the income earned in that state. (NC)
    --- you file a resident return for the state you live in (SC)  reporting all of your income, no matter where it was earned.  You claim on your home state resident return a credit for taxes paid to other states that you worked in.

    There are some exceptions to this rule, but Turbotax can handle them.

    Turbotax provides information on filing multi-state returns here: and here:
    • Addition to BWA's comment.  If you haven't prepared a North Carolina return yet, the tax liability should go down for South Carolina once you do.
    • Mine is doing this also!
    We live in Tennessee but my husband works for a company that has its office in South Carolina and they take South Carolina taxes out of his check.  Tennessee HAS NO state tax and each year we have to file a non-resident tax form with South Carolina to retrieve our due monies that were deducted.  We have been AUDITED each and every year and again this year for 2010.  Our refund is delayed and we have to provide the state of South Carolina each document to support all of our deductions as well as our car registrations, voter registrations, drivers license and evidence that we OWN a home in Tennessee where we reside 12 months a year.  Last year, I actually had the governor of South Carolina intervene when it became 'harassing' and ridiculus to give these people our personal information over and over again.
    • What if I'm self-employed and hired as a consultant by the company that is out of state?  Do I still need to file a non-resident tax return for that state?  I was paid a 1099 by the company.  Thank you.
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