2006-12-18 14:20:33 · 13 answers · asked by Army Wife 40 1 in Business & Finance ➔ Taxes ➔ United States
In most states, you would file one state return with the state where you live and another return with the state where you worked, then take a credit on one or the other so you are not double taxed.
However, North Carolina and South Carolina have an agreement between their governments (as do a few other pairs of states) that anyone working in one state and living in the other will only pay taxes in the state where they live. So you should only need to file a SC return.
Two exceptions: First, if your employer withheld NC tax withholding, then you will have to file a return there to claim a refund of the amount withheld. Second, this agreement only applies to money earned at work. If you have investments or business income or property or other types of income from the other state, you will still need 2 tax returns.
2006-12-18 14:40:03 · answer #1 · answered by Bryan 2 · 0⤊ 0⤋
File a Resident South Carolina return and a Non-resident North Carolina return.
2006-12-18 22:35:51 · answer #2 · answered by KillerKat 3 · 0⤊ 0⤋
You will need to file in both. You will file your normal SC income tax return. For NC you will need to file as a non-resident. You will receive credit for any taxes you pay to SC and only owe the difference if any. I don't know the tax rates for the 2 states off the top of my head, but if NC's rate is lower, then you will owe nothing to NC after the credit.
2006-12-18 23:38:50 · answer #3 · answered by RopeResQ 2 · 0⤊ 0⤋
You'll file in South Carolina, the state where you live.
I live in VA but work in DC and I file income taxes in VA. My salary receipts and W2 show taxes being withheld for the state of VA.
2006-12-18 22:25:07 · answer #4 · answered by imisidro 7 · 0⤊ 0⤋
South Carolina. Hopefully your W-2 shows withholdings from SC instead of NC.
2006-12-18 22:23:14 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Where you live unless you own the place where you work then you would have to file the business taxes in the place where the business is located.
2006-12-18 22:25:28 · answer #6 · answered by Daniel H 5 · 0⤊ 0⤋
you file in both but you get a credit for taxes paid to another jurisdiction. you'll receive w2's for both states and get a refund for the state you paid taxes to that you don't live in. just look at your pay stub, it will show that you have paid into both states, but you'll get money back for one.
2006-12-19 12:57:39 · answer #7 · answered by nadine 2 · 0⤊ 0⤋
Read the instructions for both states. The issue should be addressed there.
2006-12-18 22:23:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Most likely, both states.
2006-12-18 22:23:04 · answer #9 · answered by bata4689 4 · 0⤊ 0⤋
It doesn't matter as long as you file. The IRS is the IRS, they don't care what state you are in.
2006-12-18 22:52:57 · answer #10 · answered by Anonymous · 0⤊ 0⤋