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Tax Law (Questions About Taxes)/Living in SC but working in NC

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Question
Hi John,
Thanks for offering your services at AllExperts; I appreciate your time and help.  My husband and I are considering moving to a town on the South Carolina side of the SC/NC border.  It appears that our best options for employment within decent driving distance will be in the Charlotte North Carolina metro-area so we are wondering about the tax implications of living in one state and working in another.  How does that work come tax time?  Will we have to file for both states even if we both work in NC and both live in SC?
If one of us finds work in SC and the other in NC (but we both live in SC) is it much more complicated/expensive since income will be from two states?
Thanks for any light you can shed on this question for me.  I have been told everything from it's not a big deal at all to avoid doing it at all costs because of tax complications so I am trying to figure this out before we even start to look for employment.
Cheers,
Beth

Answer
Beth,

Thanks for your question.

Not really a big deal, once you get the hang of it.  You will have to file in SC, reporting all your income, regardless of in which state it originated.  So, if you you work in NC but live in SC, that income is taxable in SC.

If one or both of you work in NC, you will have to file in NC as a non-resident, reporting only your income earned in NC.  

To avoid double taxation, SC will give you a credit for the taxes paid to NC.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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