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Level 2
January 21, 2022
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State Tax, Multiple states

  • January 21, 2022
  • 1 reply
  • 15 views

My permanent residence is in Massachusetts and I need to file in Massachusetts, but I have income from Maine with withheld taxes.  I believe I have to file in both states. How do I purchase Maine Turbo-Tax ?

Best answer by DianeW777

Yes, if you physically worked in both states then you need to file a resident and nonresident tax return.  Always prepare the nonresident return first and your resident state will give you a credit.

 

The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income.  As the resident state all worldwide income must be included.  The credit allowed is the lesser of:

  1. the tax liability actually charged by the nonresident state, OR
  2. the tax liability that would have been charged by the resident state
    1. When to file more than one state return.

When you are signed into your TurboTax account be sure to answer the question in the Personal Info section about income from another state.

Then when you go to the State tab you will see the other state there for you.

1 reply

DianeW777Answer
Level 15
January 21, 2022

Yes, if you physically worked in both states then you need to file a resident and nonresident tax return.  Always prepare the nonresident return first and your resident state will give you a credit.

 

The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income.  As the resident state all worldwide income must be included.  The credit allowed is the lesser of:

  1. the tax liability actually charged by the nonresident state, OR
  2. the tax liability that would have been charged by the resident state
    1. When to file more than one state return.

When you are signed into your TurboTax account be sure to answer the question in the Personal Info section about income from another state.

Then when you go to the State tab you will see the other state there for you.

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