I live in South Dakota but work full time in Iowa, will I get a refund of the state income tax that I am paying to Iowa?

[mpopkes]

I live in South Dakota but work full time in Iowa, I am wondering if when I do my taxes this year if I will get the state income tax  back that I paid into Iowa last year? 

[jerry2000 · Accepted solution]

SD does not have an income tax, but Iowa taxes your income whether you are an Iowa resident or a non-resident. So, whether you get a refund from Iowa depends on how much you had withheld for state tax and how much state tax you owe.

[LinaJ2018]

For the tax year of 2019, you are required to file an Iowa nonresident tax return if you have net income from Iowa sources of at least $1000.  Whether you would owe a balance due or receive a refund depends on how much the state tax withholding is taken out by your employer.  This is reflected in box 17 on your W-2.

In any of the Turbo Tax programs, under the Personal Info tab, select You & Your Family, on-screen Your Personal Info Summary, make sure you have your residency of state-listed as South Dakota.  On the same screen, also ensure you select Iowa in the section of Other State Income, as the state where you make money other than South Dakota.

You would then enter all your information under the Federal section, the program will transfer them over to the state tax section under Iowa.  Please be advised that you do need to complete the Iowa state tax section by going through their interview questions to verify all the questions are answered correctly and you are given all the possible deductions. In order to do that, on the screen says Your State Returns, select Edit under Iowa to complete.