Question

Federal Employee that lives in SC, but works in GA. How to have taxes taken out

Forum|Forum|1 year ago
August 28, 2024
1 reply
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Looking for information on how I should have taxes taken out of my paycheck.

The situation is I am a new federal employee in Georgia, but I live in South Carolina. Should I have state taxes taken out for SC or GA or both? I don't want to owe at the at filling and would like to make filing at the end of the year as simple as possible.

Anyone been in this situation before or can point be in the right direction?

T

TomD8

You should definitely have taxes taken out for Georgia, the state in which you will work. Georgia can tax all the income you earn by working in Georgia. Your resident state of South Carolina can tax all your income, including your earnings from Georgia, but South Carolina will give you a credit on its tax return for the tax you pay to Georgia. The credit will reduce (and in some cases eliminate, depending on your tax bracket) your SC tax bill.

At year's end you will file both a non-resident GA tax return and a return for your home state of SC. In TurboTax, complete the non-resident state return first, before the home state return. The program will then calculate and apply the credit.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Z

Zak6182Author

I really appreciate the help!! It makes sense, but the federal gov (DoD) as an employer part is what's complicating it for me.

I don't understand why does paying taxes to GA mean anything since I work for the federal government? The fed gov is in every state. My thoughts are this is similar to active duty, in that they only pay taxes based on their home of record (residency). I know active duty military isn't the same as civilian, but I would think the thought process is the same.

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Zak6182Author

@Zak6182 - I think you may be missing the point. you do NOT pay taxes to both states on all your income.

1) since you work in GA, you have GA taxes withheld on your paycheck and complete the GA non-resident tax return at the end of the year.

2) NOTHING IS WITHHELD FOR SC ON YOUR PAYCHECK.

3) since you live in SC, you complete a SC resident tax return and they tax all your income, regardless of where it was earned. HOWEVER, and I'll state that again, HOWEVER, they give you a credit on the SC tax return for the taxes paid to GA.

4) the taxes you pay to SC will probably be minimal and may be nothing. If it is nothing and since nothing was withheld on your paycheck, you neither owe SC or receive a refund.

does that make sense.

So much sense! I understand now. Thank you!