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State filing

I live in Nebraska but have some farm trust income from Iowa so I file two state returns.  Someone said it is important to complete one of the returns first.  If true, which return should I complete first?

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1 Reply
MaryK4
Expert Alumni

State filing

You want to file the nonresident Iowa first.  Full-year residents are taxed on all income, regardless of the source or where derived- but you will receive a credit for taxes paid to other jurisdictions (in most cases and definitively in yours) so you are not taxed twice on the same income at the state level so you have to calculate your nonresident tax first so you know the amount to enter for the credit.  

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