If i work in one state and live in another how do i file

[DanielV01]

It depends on the two states and how the taxes were withheld.  You will always file a resident tax return in the state in which you live.  Your resident state taxes all of your income regardless of where you earn it.  What you do with the other state depends on whether they are reciprocal or not.  This FAQ has more information:  https://ttlc.intuit.com/replies/4776822

If the two states are not reciprocal, then you file a nonresident return for that state.  Your resident state will give you a credit for the tax you must pay to the state in which you are working so that you are not over-taxed, but otherwise both states are taxing you.  Prepare this return first so that TurboTax may correctly calculate your credit.  Here's an FAQ to assist you with this:  https://ttlc.intuit.com/replies/3302052

However, if the two states are reciprocal, how you file then depends on whether or not taxes were taken out in the state where you work.  Reciprocal states agree that when you live in one state but work in the other, you are only taxed where you live and not where you worked.  If no taxes were taken out to the state where you worked, you will only file your state's resident return.

On the other hand, if taxes are taken out to the work state, then you will want to file a nonresident reciprocal return for the state where you worked.  This way you can get all the taxes returned to you that were paid to that state.  In addition, by filling out the correct form as mentioned in the FAQ above, you can have your out-of-state employer only take out taxes to the state in which you live.

Feel free to comment your states and I can tell you if they are reciprocal or not.

[Zcaitlyn]

I live in WV and work in OH.  I understand they have a reciprocal agreement.  Taxes were taken out correctly- only for WV.  When completing my taxes, do I note yes or no on the question- did you work in a state other than WV?

thanks 

[msweiland]

We live in Illinois but my husband's company is based in Nebraska (we moved from Nebraska in 2019). They had been withholding only Nebraska taxes which got us in trouble with Illinois last year, where we had to start paying estimated taxes. Partway through 2020, they changed the withholding to Illinois. His W2 shows income and taxes paid to Nebraska as well as Illinois (split when they made the change). So it looks like we moved to Illinois partway through the year when in fact we were full year residents. So - should his earned income really be split between the two states the way the W2 shows, or do they need to redo it showing all the income was in Illinois but we paid withholdings to Nebraska?

[LenaH]

No. Since you are a full year resident of Illinois, all of your wages will be taxed by Illinois. You will also have to file a nonresident Nebraska return. However, only the wages paid to your husband for work done in Nebraska is subject to Nebraska income tax withholding. If he worked in Illinois the entire year, he would have $0 in Nebraska source income. If he worked partly in Nebraska, then his wages would have to be allocated between the two states. Either way, you would have to file a nonresident return because Nebraska state taxes were withheld. You will get a credit on your Illinois return of any taxes you were liable for in the State of Nebraska. 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, please make sure your resident state (as of December 31, 2020) listed under your name is correct.
3. Then, scroll down to Other State Income, and select Edit.
4. At the Did you make money in any other states? question, answer Yes and make sure your other nonresident state is selected from the drop-down.
5. Select Continue to return to your Personal info summary.
6. Click on State on the left hand side. 
7. Add the state of second state as a non-resident. 
8. Follow the on-screen instructions. 

If you are filing a resident return and a non-resident return of another state, it is recommended that you complete the non-resident return first to ensure accurate calculations. 

@msweiland

[Linx0056]

Work for a Connecticut company and live in Florida

[AmyC]

CT income for wages are attributable to compensation for services performed in CT. If you did not work in CT and did not have taxes withheld, then you would be exempt from filing. CT Non-resident instructions state:

Who Must File Form CT-1040NR/PY 

You must file Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return, if you were a nonresident or part‑year resident of Connecticut in 2021 and any of the following is true for the 2021 taxable year: 

• You had Connecticut income tax withheld; 

• You made estimated tax payments to Connecticut or made a payment with Form CT-1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals; 

• You had a PE Tax Credit and your PE did not elect to remit composite income tax payments on your behalf; 

• You were a part‑year resident who meets the Gross Income Test or who had a federal alternative minimum tax liability; or 

• You were a nonresident with Connecticut-sourced income who meets the Gross Income Test or had a federal alternative minimum tax liability. 

See Connecticut-Sourced Income of a Nonresident, on Page 8. If none of the above apply, do not file Form CT‑1040NR/PY.  

@Linx0056

[ken53163]

i work in New Jersey and live in New York

[LenaH]

You will file a resident return for the state of New York, in which you will be taxed on all of your income. You will also file a nonresident New Jersey return and be taxed on the income sourced (earned) in New Jersey. To prevent double taxation, New York will give you a credit of taxes paid on your resident return. For accurate calculations, please complete your New Jersey return first. 

@ken53163

[GA Skol]

I live in GA but work in Texas.  Texas doesn't have state taxes.  Do I still pay GA taxes for the wages earned in Texas?

[xmasbaby0]

Yes.   If you live in GA you have to pay GA income tax.  Prepare a GA return.

[apesce19]

Worked in MA, live in MA. Made say $75,000

Then worked in RI for 1/3 of the year. Made say $25,000

MA return as a resident.

RI as non-resident.

MA is telling me I made X-Dollars total that year, because it combines my State income from both states. I did not make that amount. In this example, saying I made $100,000. I did not. I only made that "said" $75,000 - NOT $100,000.

I only made what my W2 says is the MA income. But TurboTax is combining them. WHy?

[CatinaT1]

MA will tax your entire income - $100,000 and give you credit for tax paid to RI.

RI will also show your total income, but your tax is calculated on only the percentage of income made in RI. This is calculated on Schedule II of your RI return. From your example, you will pay 25% of the total RI tax calculated on your return because you made 25% of your total income in RI.

[apesce19]

That’s what I thought too. But the tricky part is, I did not make “$100,000”…I only made the $75,000 total, and $25,000 of that income was from RI. Rest from MA ($50,000).

But my box 16 shows all $75,000 b/c I lived in MA year round. Yet turbo tax is saying I made $100,000 which I did not. 

[DawnC]

MA will tax all of your income since that is your resident state - but they will give you a credit for taxes you pay to RI.   TurboTax doesn't think you made 100K - the numbers in Box 16 represent your taxable wage bases in each state.   

Use the guidelines in this document to ensure you prepare your state returns accurately.  @apesce19   You should prepare your RI nonresident return first and then prepare your resident MA return.   

Why do I need to file a Nonresident return?