RaifH
Expert Alumni

State tax filing

Yes, assuming we are talking about income tax, not sales tax, you would pay taxes to both California and Colorado in that hypothetical situation. However, you would get a credit on your resident return for the taxes paid on your non-resident California return up to the amount that your resident state would have charged you for that income. When everything is done correctly, you are not being double taxed but paying at the rate of the higher tax state. 

 

@freecleanwater [Edited 02/14/2022|4:55 AM PST]

View solution in original post