Hal_Al
Level 15

State tax filing

Q. Do i have to file a state tax return form if i live in one state and work in another state?

A. Simple answer: Yes.  But, as others have said, it depends on what the two states are.

 

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.

 

For state filing requirements, the WS does not, usually, go by what you earned in their state but by your total income . For example, if WS has a $10,000 filing requirement and your total income for the year was $15,000; you would be required to file even though you may have had only had $300 of income in that state. But if your total income was $9,000 you would not need to file.

 

Filing Requirements: https://ttlc.intuit.com/questions/2903200-do-i-need-to-file-a-state-return

 

 

If you have a reciprocal state situation, the answer is different. See https://ttlc.intuit.com/questions/2895760-which-states-have-reciprocal-agreements