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hagainassau
New Member

Does it matter which state return I fill out first?

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

Accepted Solutions
DoninGA
Level 15

Does it matter which state return I fill out first?

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

View solution in original post

11 Replies
DoninGA
Level 15

Does it matter which state return I fill out first?

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

bob667
Level 2

Does it matter which state return I fill out first?

is there a reason for this?   

Hal_Al
Level 15

Does it matter which state return I fill out first?

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

TomD8
Level 15

Does it matter which state return I fill out first?

@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.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
bob667
Level 2

Does it matter which state return I fill out first?

yes, its California...thank you

TomD8
Level 15

Does it matter which state return I fill out first?

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

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
bob667
Level 2

Does it matter which state return I fill out first?

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

TomD8
Level 15

Does it matter which state return I fill out first?

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

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
bob667
Level 2

Does it matter which state return I fill out first?

i am W2 employee...thank you

KrisD15
Employee Tax Expert

Does it matter which state return I fill out first?

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. 

 

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TomD8
Level 15

Does it matter which state return I fill out first?

<<"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.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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