DanielV01
Expert Alumni

State tax filing

Both states tax this income.  Your resident state is allowed to tax all of your income regardless of where it is earned.  Your non-resident state is allowed to tax income earned in the state, or, in this case, derived from the state.  To lessen the effect of double-taxation, your resident state will give you a credit for the tax you pay to the nonresident state on the income earned there.

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