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Multiple state returns

I am a Nebraska resident so this is my primary state return.  I also receive farm rental income via a trust from Iowa.  Thus, I also file an Iowa return.  I am told that I should complete the Iowa return first so that adjustment to my Nebraska return are adjusted correctly?  Is that correct?  Thanks so much.

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1 Reply
CatinaT1
Employee Tax Expert

Multiple state returns

Yes, you want to start with your non-resident state first. Nebraska will tax all of your income regardless of where it is earned but give you credit for taxes paid to another state.

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