i worked in SC and lived in NC can i take a tax credit on my NC tax for taxes i paid to SC?

Question

also do i deduct the tax refund i got back from sc from the amount i paid in on my w-2

Answer 1

Yes. You will need to file Form D-400TC with your NC D-400 to claim a tax credit for taxes paid to SC. There is a worksheet on page 14 to figure your credit.

http://www.dornc.com/downloads/D401.pdf

You MUST attach a copy of your SC tax return when filing your NC tax return. They will not allow the tax credit based on your W-2 alone.

Yes, you would deduct any tax refund from your withholding to come up with taxes paid to SC.

Answer 2

If your tax refund appears on your return at all, it will appear as TAXABLE income. This only applies on your Federal tax return IF you itemized deductions and claimed a deduction for state income tax in the tax year for which the refund applies. NC does allow a credit for taxes paid to another state. The amount of the credit is not always the amount of taxes paid to the other state.