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State income tax for out of state work

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    State income tax for out of state work

    I live and work in Florida. Last year my company sent me to work in South Carolina for 2 weeks.

    On my W2, it shows that they Paid South Carolina State income tax on my wages for the 2 weeks I worked there.

    I was under the impression that State Income taxes were paid only for the state that you reside in, not the state that you work in.

    My employer is insisting that I must file a South Caronline Income tax return. I feel that this is incorrect.

    Can someone shed some light on this for me?

    #2
    Follow the Money

    In general, you pay tax on all your income where you reside, plus you pay tax on any income earned in a non-resident state to that state. Usually, your resident state gives you a credit for tax paid to another jurisdiction up to the amount they would've taxed you on that income. Or, some "border" states have reciprocity agreements legislating which return(s) you will file. Sometimes, the credit is on the non-resident state return. And, you have to check the requirements for each state for their thresholds of income or time spent or types of income or AGI or whatever triggers they have for being required to file a non-resident return. I haven't done a SC return in a long time, but if you worked there you might have to file a non-resident return. Look in the instructions or on their web site for something along the lines of "Who Must File" and "SC-Sourced Income."

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      #3
      Employer is correct.

      Yes, you pay tax to states that you work in (in addition to the state you live in) unless there's a reciprocal agreement (Not w/Florida!)

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