USA South Carolina SCH "NR"

[mparacha]

I have a client who lives and works in Texas (remote). His W2 shows withholding for South Carolina. I am preparing his SC return. I have completed SCH "NR" where I can show 79k under his federal column and "0" under the state (SC) column. It is my understanding that this w2 is not SC sourced income and should not be included. Does any have experience with this?

Regards,

Mohammad

 

[DTA93433]

I would refer you to SC law regarding employer withholding responsibilities: https://www.scstatehouse.gov/code/t12c008.php [Article 5, Section 12-8-520(d)(3)]. It spells out what SC "wages" subject to withholding. I would be hesitant filing a $0 Sch NR. South Carolina may fight your position that this is non-SC income.