If you earned income in florida which was not state taxed but live in another state where do you claim the income

[bwa]

You report the income in your home state's return. 

The normal rules for interstate taxation are -

·         you file a non-resident return for the states where you worked but did not live, reporting only the income earned in that state.

·         you file a resident return for the state you live in reporting all of your income, no matter where it was earned. You claim on your home state resident return a credit for taxes paid to other states that you worked in. If the out of state income was from a state without an income tax, you would have no credit.

The result of these rules is that you will pay tax on the income, but only once, and the net result is it will be at the tax rate in the higher tax state.

·         If the resident state is a non-income tax state like Florida, Texas and others, the result will be that you still will owe taxes in your non-resident state.

·         If the non-resident state is a non-income tax state like Florida, Texas and others, the result will be that you still will owe taxes in your resident state.

When would I have to file returns in more than one state?

[dennisgaeta]

I purchased Florida and AZ state returns bc turbo tax told me I might owe tax in those states .

AZ is fine.

FL - it says 0 due and there’s no return for FL in the printouts /

it says it’s complete .  0 due.  But don’t I still have to file something?

[MayaD]

No, Florida does not have an individual state tax income tax. 

If you own a business, farm or rental property, you may have a requirement to file.

If you lived in AZ the whole year, you will report all your income on your AZ tax return.

[MichiganGuy]

My spouse and I are contemplating working remotely 1-2 months in Florida. We are both residents of Michigan. Is it appropriate to update our W-2s for the time we work in Florida to the property we would stay at for the 1-2 months? How does the effect the filing process?

[DoninGA]

@MichiganGuy The income you earn from working in Florida will also be reported on your Michigan tax return.  You must report all income from all sources on your Michigan state income tax return.

[MichiganGuy]

@DoninGA Thank you. Does this mean I will still pay Michigan income tax on the Florida income for those 1-2 months? 

[Hal_Al]

Q. Does this mean I will still pay Michigan income tax on the Florida income for those 1-2 months?

A. Yes. Having worked in a state without an income tax does not get you out of paying state tax on that income, to your home state.