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State tax filing
In a reciprocal situation, W2 income is not taxed by the non-resident state. Thus there is no "other state credit" to be taken. If taxes were mistakenly withheld by the non-resident reciprocal state, the correct procedure is for the taxpayer to file a non-resident tax return with that state, allocating zero income to that state. This will result in a full refund of the incorrectly withheld taxes.
In reciprocity situations, W2 income from the non-resident state is taxable only by the resident state.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
‎April 15, 2023
6:39 AM