Out of state work

3 replies
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Ok, My question is If I live in Illinois and am contracted by a company based out of New York to do work in Pennsylvania (for example) Which state do I claim taxes for? The state that the company that paid me is based out of, or the state that I completed the work in?

TomD8

Alumni - Champ

You file a non-resident return for the state in which you actually performed the work, and a resident tax return for your state of residence.

Be sure to complete the non-resident state return before you do your home state return, so that your home state gives you credit for taxes paid to the non-resident state.

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

epintor0217

Level 2

I wanted to try turbotax but I was not sure on what to do about that. Will it be stated to file for the non-resident return first?

AmyC

Alumni - Intuit

The program does not tell you to do the non-resident first but is the only logical thing.

First, prepare your non-resident return first. This creates your tax liability.

THEN prepare your resident state return of and it will generate a credit for your income already being taxed. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability.

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