I live in New Jersey but have only worked in several other states (Georgia, Utah, Iowa, Louisiana, Ohio, Michigan, Pennsylvania, New York, and Connecticut) for a week or two. I'm confused as to which states I'm required to file.
I think there are different rules for every state but I'm having trouble understanding what they are.
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TurboTax will allow a maximum of three states per fedeal return. You will need to use a local tax preparer to prepare returns for all of those states.
The general rule is that states with an income tax can tax non-residents on income earned from work physically performed within their borders. (There are some exceptions for those who work in the transportation industry, such as airlines, railroads, OTR trucking.)
Each state with an income tax has a "filing threshold" for non-residents. The details are available on each state's tax website. The filing threshold is the income amount above which you're required to file an income tax return.
Assuming you're a W-2 employee, the only state you don't have to worry about is Pennsylvania. NJ and PA have tax reciprocity for W-2 salary or wages. That means that NJ residents are not liable for PA income tax on their W-2 income.
Thank you for taking the time to help.
Q. I live in New Jersey but have only worked in several other states (Georgia, Utah, Iowa, Louisiana, Ohio, Michigan, Pennsylvania, New York, and Connecticut) for a week or two. Which states am I required to file?
A. Simple answer: all, especially NJ, except the reciprocal state, PA. NJ will give you a credit(s), or partial credit for the income tax paid to the other states.
This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.
For state filing requirements, the WS does not, usually, go by what you earned in their state but by your total income . For example, if WS has a $10,000 filing requirement and your total income for the year was $15,000; you would be required to file even though you may have had only $300 of income in that state. But if your total income was $9,000 you would not need to file.
For quick links to State Filing Requirements: https://ttlc.intuit.com/questions/2903200-do-i-need-to-file-a-state-return
Also see http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/
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