Living in Aiken & working in Augusta - Taxes (Rock Hill: credit, home)

[Rapunzll]

I'm selling my home here in Michigan and moving south. I haven't decided on a place to live, but will be taking a road trip next month to figure that out. I will need to be working and on one or two threads here I saw mention of poor job prospects in Aiken and that the jobs are in Augusta.

My question is......... when you live in one state and work in another, don't you have to pay state income tax to both?

TIA

[Buckeye in SC]

Originally Posted by Rapunzll

I'm selling my home here in Michigan and moving south. I haven't decided on a place to live, but will be taking a road trip next month to figure that out. I will need to be working and on one or two threads here I saw mention of poor job prospects in Aiken and that the jobs are in Augusta.

My question is......... when you live in one state and work in another, don't you have to pay state income tax to both?

TIA

No, I haven't worked in tax world for a while, but basically from what I remember, you will have GA state tax withheld, then receive a credit on your SC-1040 for taxes withheld in another state, reducing your liability in SC by that amount. Someone from Rock Hill/Ft. Mill area can probably help you w/the specifics as there are plenty of people that live there who work across the state line in Charlotte.

[littlelou]

I'm in Charlotte but work with many who live in SC and work in NC., Basically, it was explained to me that everything you pay into North Carolina comes back to you and you endorse the check to South Carolina.

hahaha

Buckeye is correct, you get the credit on your 1040 and at least up here North Carolina taxes are higher than South Carolina so most get a refund from SC.

[Rapunzll]

Thanks guys!

[burr]

It turns out to be about even, what you owe one state (SC) as to what you get back (Ga). You file in Carolina only (since that is your residence).