Quick Answer
If you live in North Carolina (Calabash, Carolina Shores, Sunset Beach) and work in South Carolina (North Myrtle Beach, Little River, Myrtle Beach), you generally file a South Carolina nonresident return for those wages and a North Carolina resident return reporting all your income. North Carolina generally gives a credit for tax paid to South Carolina on the same income, so you are not fully taxed twice. The reverse applies if you live in South Carolina and work in North Carolina.
Check your withholding
Employers in South Carolina withhold South Carolina tax, but your North Carolina bill may not be fully covered by the credit if the rates differ. A small North Carolina estimated payment or extra withholding can prevent a surprise balance.
Small business owners on the line
Contractors, cleaners, rental managers and other businesses that serve both states may need to register and file in both. North Carolina and South Carolina each have their own sales tax rules, and coastal rentals carry occupancy taxes on both sides of the border.
Common situations we see
- Hospitality and golf course workers commuting to Myrtle Beach
- Spouses working in different states
- Vacation rental owners in Ocean Isle or North Myrtle Beach
- Retirees with part time seasonal jobs
General information only. Talk with a preparer about your own situation.
Keep reading
Questions about your own situation? Book an appointment with the My Tax Fella team.