I am tax illiterate so bare with me. I work remotely and I moved from North Carolina to South Carolina last year. My home address reflected South Carolina, but it was still showing that I was working remotely in North Carolina. Looks like there was a slip up of whomever is in charge that they never actually changed it that I was working remotely in South Carolina despite my home address (make it make sense). Anyways, fast forward to now. My tax person is telling me that I’m having to pay back South Carolina because I was living in South Carolina, but working in North Carolina. I contacted my employer, and they said that there was no backdating or adjustment that could be done for last year that they could only go ahead and correct it for current year? Is this basically gonna cost me more, just leave it as it or what should I do? TIA!!
Posted by Odd_Caterpillar_7057
1 Comment
TLDR (I hope) :
* Employer has no ability to get that money back and move it from one state to another, correct
* When you file a Nonresident Return for NC, it’ll effectively say “hey, I proooobably gave yall too much money, because I did not live there for the entire year”, and if that is actually true, they’ll refund you for what was overpaid to them
* you DO owe SC income tax for the part of the year you lived there, tho. You need to pay it. Perhaps the refund from NC will be enough to cover it, perhaps not. State Income taxes are a little higher in SC, over a certain income level. The specifics really depend on your income and other deductions / credits
* **ABSOLUTELY correct your residency information with your job / payroll**, so they are calculating money for, and sending your money to, the correct state. There is NO benefit to not correcting this, having money sent to the wrong state, and continuing to have to file a tax return for a state you nether live or work in.
Hope that helps