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Level 2
May 2, 2021
Question

State

  • May 2, 2021
  • 1 reply
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If i live in one state but earn income (W-2) in another state is that considered out of state business income

    1 reply

    Level 15
    May 2, 2021

    No. Out of state business income is generally earnings from self-employment. TurboTax will carry your W-2 income to the state that's listed in the state code in Box 15 of your W-2.

     

    Some states have reciprocal agreements, meaning your out-of-state employer will withhold tax from your home state so you only have to file one state tax return.

     

    For other states, you will have to file two state tax returns, but can claim a credit for taxes paid to your work state on your home state return.

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    WBowen5Author
    Level 2
    May 2, 2021

    Thanks