You report the income in your home state's return.
The normal rules for interstate
taxation are -
·
you file a
non-resident return for the states where you worked but did not live, reporting
only the income earned in that state.
·
you file a
resident return for the state you live in reporting all of your income, no
matter where it was earned. You claim on your home state resident return a
credit for taxes paid to other states that you worked in. If the out of state
income was from a state without an income tax, you would have no credit.
The result of
these rules is that you will pay tax on the income, but only once, and the net
result is it will be at the tax rate in the higher tax state.
·
If the resident
state is a non-income tax state like Florida, Texas and others, the result will
be that you still will owe taxes in your non-resident state.
·
If the
non-resident state is a non-income tax state like Florida, Texas and others,
the result will be that you still will owe taxes in your resident state.
When would I have to file returns in more than one state?
