Tax preparation when working in two states, one being Texas?

I have a home in South Carolina, but I am about to work in Texas for at least a year. I rent my home in South Carolina, so all of my mail will need to go to Texas. However, I want to keep SC tags, etc. What is the best way to handle this and how does it affect my taxes? Does the fact that Texas has no state income tax have any effect on me? Will SC take taxes out anyway?

Public Comments

1. Unless you take steps to change your residency to Texas, South Carolina will treat it as if you never moved and tax the income that you earn in Texas. Change your driver's license and car registration to Texas and South Carolina should leave you alone.
2. You will need to keep a residence in South Carolina, in order to claim it as your legal residence. You also need to keep SC drivers license. Otherwise, it looks "fishy" to the taxing authority. It also would not be acceptable to lender if you had legal residence in one state, and drivers license in another. This could initiate a fraud investigation. The temporary residence in Texas can be considered a domiciliary, vs a legal residence. Thus, you do not change car tags. If you do the above, you will need to pay SC income taxes.
3. The best, easiest, simplest way to do it is to "move" to Texas (yes, you need to change your plates) and then, when you are through one year, two years, ten years, whatever, down the road (sorry) "move" back to South Carolina. Texas doesn't have a state income tax, thank the "greedy" oil companies for paying that for you. If you keep your official residence in South Carolina, you will pay South Carolina income tax on your Texas income.
4. Dear Sean: If your assignment to Texas is predetermined it is a temporary assignment and you will not qualify as a TX resident. YES, SC will tax all your income, it's your state of record. If your assignment to TX is undetermined and may last for a long time you maybe able to change your residence. I would have a meeting with a tax professional to sort out all possibilities. The treatment of your expenses is also an issue based on your assignment, temporary or indefinite. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor
5. Contact a South Carolina tax CPA. They should be able to help you since they know the industry and local laws. http://www.taxpreparationlocations.com/South-Carolina-Tax-Preparation.html