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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15192
Experience:  15years with H & R Block. Divisional leader, Instructor
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I live in South Carolina and work from home. My company is

Customer Question

I live in South Carolina and work from home. My company is based in North Carolina and they withold NC income tax. For the past two years I have been claiming the credit for out of state tax paid, zeroing out my SC tax liability but end up owing additional NC tax. As the NC tax rate is higher and all my income is from South Carolina, is there anything I can do to pay the SC tax, which would result in a refund rather than a payment to NC?
Submitted: 5 years ago.
Category: Tax
Expert:  Robin D. replied 5 years ago.

Robin D :

Hello and thank you for using Just Answer
In North Carolina a nonresident employee is subject to withholding on the part of the wages for performing services in North Carolina. If they will not withhold instead for South Carolina then the North Carolina law states that any relief from double taxation must be made in the resident state. This is what you are doing by using the credit on your SC resident return. If you are still owing tax to NC then you need to adjust your withholding and have more withheld for NC.
I wish there were a simplier way for you but this happens many times when someone works in one state but lives in another.
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