topic Why do I owe taxes to a state I didn’t earn money in. in Get your taxes done using TurboTax

Why do I owe taxes to a state I didn’t earn money in.

zec8473 — Tue, 03 Feb 2026 11:32:08 GMT

My permanent address is in Alabama, but I worked in other states throughout the year. I did not enter a W2 or any other form for Alabama, yet the app says that I owe $143. Is there a way to fix that?

Re: Why do I owe taxes to a state I didn’t earn money in.

DoninGA — Wed, 12 Feb 2025 13:34:41 GMT

Since Alabama is your resident state then all income from all sources is taxable on the Alabama state income tax return.

Re: Why do I owe taxes to a state I didn’t earn money in.

Hal_Al — Wed, 12 Feb 2025 13:48:22 GMT

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.