TomD8
Level 15

State tax filing

@ajklenne :

 

Yes.

ALL your income is taxable by your home state of Iowa, regardless of where you earn it.

In addition, Nebraska can tax you as a non-resident on income you earn from work you actually (physically) perform in Nebraska.

Therefore you must file two state tax returns: a non-resident NE tax return, AND a resident IA tax return.

You'll be able to claim a credit on your IA return for the taxes you pay to NE, so you won't be double-taxed.  But you must file in both states.

If you do your returns in TurboTax, be sure to complete the non-resident state return first, before the home state return, so that the program can correctly calculate and apply the credit.

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