How does South Carolina tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in South Carolina.
• If you're considered a full-year or part-year resident of South Carolina, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from South Carolina.
• South Carolina taxes income earned for personal services performed while in South Carolina (even if you're a nonresident). This includes remote work for an employer or clients based outside South Carolina if you were physically in the state while doing the work.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in South Carolina.
• If your employer was based in South Carolina, they may have withheld South Carolina taxes from your South Carolina wages as shown on your W-2. However, if you didn't live or physically work in South Carolina, you won't owe South Carolina taxes on those wages and can file a nonresident return to claim a refund of those withholdings.
• If your employer didn't withhold South Carolina taxes and you were a nonresident of South Carolina, you probably don't need to file a South Carolina return at all unless you otherwise have a South Carolina nonresident filing requirement.

If your wages were minimal and you didn't do any other business in South Carolina, it's possible you'll be exempt from filing regardless of residency. See the South Carolina SC1040 instructions for more information.