Even without a residence in NM, if you are physically in NM when you perform services, you would need to file a non-resident return for that state.
The normal rules for interstate taxation are -
·
you file a
non-resident return for the states where you worked but did not live, reporting
only the income earned in that state.
·
you file a
resident return for the state you live in reporting all of your income, no
matter where it was earned. You claim on your home state resident return a
credit for taxes paid to other states that you worked in. If the out of state
income was from a state without an income tax, you would have no credit.
The result of
these rules is that you will pay tax on the income, but only once, and the net
result is it will be at the tax rate in the higher tax state.
·
If the resident
state is a non-income tax state like Florida, Texas and others, the result will
be that you still will owe taxes in your non-resident state.
·
If the
non-resident state is a non-income tax state like Florida, Texas and others,
the result will be that you still will owe taxes in your resident state.
There are some
exceptions to this rule, but can handle
them. Exceptions are in "Reciprocal Tax Agreement" states. This URL provides information
on filing multi-state returns
In Turbotax you
must follow this sequence:
·
Prepare your
federal return,
·
Prepare your
non-resident state return, then
·
Prepare
resident state return.
