topic Does it matter which state return I fill out first? in State tax filing

Does it matter which state return I fill out first?

hagainassau — Wed, 05 Jun 2019 04:46:27 GMT

I have to file in two states because I have rental property in a nonresident state.

Complete the non-resident state tax return first. Then t...

DoninGA — Wed, 05 Jun 2019 04:46:30 GMT

Complete the non-resident state tax return first. Then the resident tax return.

Re: Complete the non-resident state tax return first. Then t...

bob667 — Thu, 23 Jan 2020 09:21:53 GMT

is there a reason for this?

Re: Complete the non-resident state tax return first. Then t...

Hal_Al — Thu, 23 Jan 2020 12:00:04 GMT

Yes. Your resident state will give you a credit, or partial credit, for the tax paid to the non resident state. So, the non resident state tax must be calculated 1st

Re: Complete the non-resident state tax return first. Then t...

TomD8 — Thu, 23 Jan 2020 14:58:51 GMT

@bob667 -- There are a few exceptions to the "non-resident return first" rule. The exceptions all involve California. Post back if one of the states involved is California.

Re: Complete the non-resident state tax return first. Then t...

bob667 — Fri, 07 Feb 2020 02:50:53 GMT

yes, its California...thank you

Re: Complete the non-resident state tax return first. Then t...

TomD8 — Fri, 07 Feb 2020 14:34:20 GMT

@bob667 -- In which state do you live, and in which state do you work?

Re: Complete the non-resident state tax return first. Then t...

bob667 — Sat, 08 Feb 2020 19:49:02 GMT

thank you for your time! I live and work remotely in Hawaii all of 2019 for a company in Cal

Re: Complete the non-resident state tax return first. Then t...

TomD8 — Sat, 08 Feb 2020 20:19:22 GMT

@bob667 -- Are you a W-2 employee, or an independent contractor who receives a 1099-MISC?

Re: Complete the non-resident state tax return first. Then t...

bob667 — Sat, 08 Feb 2020 21:56:41 GMT

i am W2 employee...thank you

Re: Complete the non-resident state tax return first. Then t...

KrisD15 — Sun, 09 Feb 2020 21:01:19 GMT

California does NOT tax non-resident telecommuters.

You do not owe California State Income tax on that income. If California tax was withheld, you can file to get that tax refunded.

Re: Complete the non-resident state tax return first. Then t...

TomD8 — Mon, 10 Feb 2020 21:57:16 GMT

<<"i am W2 employee...thank you">>

@bob667 — Then your income is not taxable by California. But it is fully taxable by your home state of Hawaii.