topic Which State Do I File With? in State tax filing

Which State Do I File With?

LaneLeroux — Tue, 18 Feb 2025 09:02:48 GMT

Hello, I live in CA but opened a therapy practice in Nevada. I go to Nevada maybe 3 days out of the week to work in person. Do I file with CA or do I file with NV? Thank you

Re: Which State Do I File With?

KrisD15 — Tue, 18 Feb 2025 12:08:39 GMT

You will file a resident California state tax return and claim all your income. Usually the resident state will give you a credit for income taxes you pay to another state; however, since Nevada has no state income tax, you will only pay to California.

Re: Which State Do I File With?

Hal_Al — Tue, 18 Feb 2025 13:27:35 GMT

You report all your income on your resident state return, including the income earned in the other state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state.

When you worked in a state without an income tax (e.g. Nevada), there will be no credit, since there was no NV tax. In other words, having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.