- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
You must file an Idaho return when your income is sourced there. See Idaho source income which states:
Idaho source income is income from either of these:
- Transactions or activities that take place in Idaho
- Property in Idaho
If you work purely from AL, you will have no activities in Idaho and do no need to file a return except for a refund.
If you have activities in Idaho, you will will have taxable income and need to file like this:
You will file AL since you are a resident. You don't say if you are part year or full year resident. Either way, AL will give you a credit due to the ID tax paid.
Your resident state taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident ID return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- Then prepare your resident state AL return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.
[Edited 2/19/2023 | 8:56 am PST] @mebeme_1963
**Mark the post that answers your question by clicking on "Mark as Best Answer"