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North Carolina Resident with South Carolina Income Requires Two State Returns

If you and your spouse are residents of North Carolina, file Married Filing Jointly on your Federal 1040, but one of you has income from South Carolina, you are required to file two state returns.

  • North Carolina
  • South Carolina
  • How to e-file

 

North Carolina Return

You will file your North Carolina state return with your federal Married Filing Joint return, and will manually adjust the  Taxes Paid to Another State section within the Interview. Here's how:

  1. When asked if you have credit for taxes paid to another state, select Yes.
  2. Select Add a New State and then select South Carolina from the list provided.
  3. Enter the amount paid to South Carolina from your South Carolina state return. 

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South Carolina

You will file your South Carolina state return as a non-resident, Married Filing Separately (required by law). To do this in TurboTax, copy your federal Married Filing Jointly return and file from the copied return. Here's how: 

  1. Complete your federal return as Married Filing Jointly.
  2. Save your return.
  3. Then select File, Save As and save your existing return using a different file name (this is the copy of your completed 1040 return).
  4. In the copied file,  change the filing status to Married Filing Separately and make any changes (for example, to income, deductions, etc.)
  5. From the copied return, select the State Taxes tab, and then start your South Carolina return. TurboTax will fill in the information from the copied federal return.

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How to e-file a return

You can e-file your Federal and North Carolina State returns together.

To e-file your South Carolina separately: 

  1. From the copied federal return, Open your South Carolina return.
  2. Select Forms, and then Show My Return.
  3. Select  Information Worksheet and then Open.
  4. Scroll to Part III and select the check box on the right for option 3.
  5. E-file your South Carolina state return from within this return only.

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