If I travel to and work in the state of Utah and live in Idaho do I need to file Idaho State taxes?

[lynduhdain15]

I live full time in Idaho however I work in Utah. Do I only need to file state taxes in Utah or am I required to file in both?

[SteamTrain · Accepted solution]

Yeah, you'll probably need to do both.

Utah can only tax the income that you earn in Utah.

Idaho calculates a tax on ALL your income, including Interest, dividends, capital gains (etc)  ....then ID allows you to take a credit for the taxes you paid to UT (on just that income in UT)..so you don't get double-taxed.

......thing is..UT is a fairly flat tax rate (~5%) and ID is graduated (1.7-7.4%).  So if you have enough income that ID will tax at the higher rate, then ID will collect the extra above 5% that UT didn't...and if you are in a lower IDaho tax bracket than 5%, then ID will only allow a credit up-to- what Idaho would have charged.

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Don't start on yoru state taxes until you are entirely done entering ALL of your Federal income and Deductions (sometime in maybe February)  Then you must do the UT non-resident tax return first....then finally, the ID resident tax return.