topic What is double taxed state income? I was paid separately while living in separate states, would i need to put in an amount? While a Ut resident i was not taxed by both NM in Deductions & credits

What is double taxed state income? I was paid separately while living in separate states, would i need to put in an amount? While a Ut resident i was not taxed by both NM

hc20134 — Sat, 01 Jun 2019 07:04:21 GMT

Double taxed state income generally occurs when you live...

AnnetteB — Sat, 01 Jun 2019 07:04:23 GMT

Double taxed state income generally occurs when you live in one state while working in another state.

Usually the state where you live wants to tax your income no matter where it was earned. Also, the state where you earned the income wants to tax it because you earned it in that state. Therefore, the income is taxed by both states.

To overcome the double taxation, you can usually claim a credit for taxes paid to another state on the resident state tax return.

In your case, if there was a clear separation of income earned only while living in each state and you are filing a part-year resident return for each state, then there should not be any double-taxed income.

Re: What is double taxed state income? I was paid separately while living in separate states, would i need to put in an amount? While a Ut resident i was not taxed by both NM

Elpiwolphy — Wed, 09 Mar 2022 18:12:00 GMT

I am currently working in Minnesota, but I'm paying California state tax ,too..what should I do?

Re: What is double taxed state income? I was paid separately while living in separate states, wou...

ErnieS0 — Wed, 09 Mar 2022 20:56:33 GMT

It depends on why you are paying California state tax @Elpiwolphy. Are you a California resident working in MN, or did you move to MN from CA and keep the same job?

California doesn't tax you unless you are working in California, unless you are a resident. Residents pay tax on income earned everywhere.

If you are a CA resident working in MN, you'll file a resident CA return and a nonresident MN return. You can claim a credit on the CA return for tax paid to MN. Prepare the nonresident return first and TurboTax will figure the credit for you.

If CA tax was withheld by mistake, you'll have to file a return with $0 CA income to get the money back. You'll still pay MN tax on your income.