KrisD15
Expert Alumni

State tax filing

Yes.

If you work in one state and live in another, and the states have a reciprocal agreement, you only pay tax to the state in which you live.

 

If your employer withheld the wrong state tax, you need to file as a non-resident with that state to get the tax refunded.

You also need to file your home state tax return, claim that income, and pay the tax that was not properly withheld. 

 

Depending on the tax rate of the two states, it could be a wash, or you could owe additional tax to the home state.

 

TurboTax knows which states have reciprocal agreements and will calculate for that.

 

Be sure to list your home state as your resident state. 

Report for the work state first to get the refund.

Report for the home state to pay the tax.

 

If you are still having issues with the program not recognizing the reciprocal states, please tell us:

the home state

the work state 

the state listed in Box 15 on the W-2 

the state you listed as your resident state in the "Personal Info" section 

which state you started first

 

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