DS30
New Member

State tax filing

Yes -

If you are a permanent resident of NE but work in IA, then you will need to file an IA nonresident state income tax return (for your IA source income only - your IA wages). You will also need to file a NE resident state tax return (for all income from all sources including IA wages). You will get a state income tax credit in NE for any IA state income taxes that you paid on your nonresident IA state income tax return.

You will want to work on your nonresident IA state income tax return first. You will then take a tax credit from your nonresident IA state income taxes on your resident NE state income tax return. (Please note that you will only get a tax credit for your IA state income taxes up to the amount of NE state income taxes that would have been paid if the income was earned in NE).  The credit for taxes paid to another state section will be at the end of your residence state's interview process.

Just follow the TurboTax guide when working on your states (remembering to do your nonresident state return first) and TurboTax will do all the calculations and credits to your resident states return.

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797