You must always report your worldwide income on your resident state return, if they have a state income tax. That being said there is a question on where the source of your income is from. Some state require that you report income that is from a source located in that state (Virginia).
- Virginia Tax
- Virginia law imposes individual income tax filing requirements on virtually all Virginia residents, as well as on nonresidents who receive income from Virginia sources.
If the state where you move does have a state income tax, there is a credit for taxes paid to another state on the same income.
- The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.
- The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
If you don't have tax in one of the states (FL as example), then there is not going to be a credit for that state.
Review the link below if you have questions about a particular state. You can also add any question here as you start to prepare your state returns.
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