topic Out of state work in State tax filing

Out of state work

chevellenut1969 — Thu, 30 Jan 2020 20:53:29 GMT

Ok, My question is If I live in Illinois and am contracted by a company based out of New York to do work in Pennsylvania (for example) Which state do I claim taxes for? The state that the company that paid me is based out of, or the state that I completed the work in?

Re: Out of state work

TomD8 — Thu, 30 Jan 2020 21:04:35 GMT

You file a non-resident return for the state in which you actually performed the work, and a resident tax return for your state of residence.

Be sure to complete the non-resident state return before you do your home state return, so that your home state gives you credit for taxes paid to the non-resident state.

Re: Out of state work

epintor0217 — Wed, 05 Feb 2020 01:34:18 GMT

I wanted to try turbotax but I was not sure on what to do about that. Will it be stated to file for the non-resident return first?

Re: Out of state work

AmyC — Sat, 08 Feb 2020 03:09:59 GMT

The program does not tell you to do the non-resident first but is the only logical thing.

First, prepare your non-resident return first. This creates your tax liability.

THEN prepare your resident state return of and it will generate a credit for your income already being taxed. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability.