BrittanyS
Expert Alumni

State tax filing

In most states, residents pay tax on the income (from all sources) they receive during the calendar year. Residents typically get a tax credit for taxes paid to any other state.

 

As a non-resident, you still have to use an apportionment schedule to determine how much tax you owe in each state, but the interesting twist here is that you also pay tax on all of your income for the entire year to your resident state. Why do the apportionment schedule, then? Because you pay taxes on what you earned in the temporary state and what you pay to your resident state.

 

Does this sound like double taxation? It is, except that most states usually allow a credit on your resident return for the taxes you paid to the other (nonresident) state. This usually means that you won't pay any more tax than you would if you didn't have to complete the temporary state's return. But if your nonresident state has higher taxes than your resident state, you might pay more in total taxes because your resident state won't allow you full credit.

 

For more information, see the link below:

 

Multiple States

 

@zmeya26 

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