STATE TAXES

colbian56 — Mon, 31 Mar 2025 16:54:06 GMT

I have one W2-G from Mississippi and I live in Louisiana. Mississippi does not require me to complete a return. This is listed on there state website, because at the time of the win the state automatically takes out the taxes. They do not refund them to you. hence the reason for not having to file. Question- If I live in Louisiana, do I need to report this to them? While entering info on my domicile state return they ask If I have income from another state but they also say attach the return from the other state. I am not required to file with the state I won in so why would I file a return. Any help would be appreciated.

Re: STATE TAXES

DianeW777 — Mon, 31 Mar 2025 17:08:12 GMT

Yes, you report all worldwide income to your resident state. Louisiana (LA) will give your a credit for taxes paid to another state. It may be best to mail your LA return to include a copy of the W-2G or similar statement that shows the amount of tax that was withheld and paid to Mississippi (MS). This is what they are requesting, proof of taxes paid to MS.

State Returns - Your resident state requires you to include all worldwide income. Assume both states require income tax returns to be filed:

Report the income on each state return that is from the nonresident state
Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

the tax liability actually charged by the nonresident state, OR
the tax liability that would have been charged by your resident state

In most cases complete your nonresident state first.

topic STATE TAXES in State tax filing

STATE TAXES

Re: STATE TAXES