Taxes

[dleeis]

In 2022, I was attending college out of state for 5-6 months. Then came back home (address on my driver’s license for a few months). I was then offered a job (musician) and worked in 3 different states for a few months, where my W2's totaled $61,000. I filed taxes in those states but today received a letter from the Dept. of Revenue in my home state stating they do not have record of receiving a 2022 Individual Income. There's a list of fees should I owe (and it made my heart drop) OR a list of reasons why I did not file. One is "I was not required to file for 2022" and provide the reason. I never earned a dime in my home state so filing wasn't an option. However, I want to make sure that I am doing the right thing so that I can make this disappear of my record. I am seeking any advice you can give. Thank you!   

[xmasbaby0]

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS   

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

[xmasbaby0]

One question----while you were away at school did you have any earnings in the state where you attended school?    Students are considered to be "temporarily absent" from the family home when they are away at school, so you may have needed to file in your state if you had earnings in the state where you attended college, and you would have needed to file in the "college" state as a non-resident.   It would be helpful to know what states are involved.

[rjs]

Multi-state taxes are complicated. You need to go to a tax professional who specializes in multi-state taxation to straighten out your situation. If you are going to be regularly performing in multiple states, you will probably need an ongoing relationship with a tax professional.

Here's a broad overview of some of the considerations.

Each state has different tax rules, and each state has its own definition of a resident for income tax purposes. That's why it's necessary to know the specific states involved in order to determine how to handle your taxes. But don't even bother to post the specific states here. Your situation is too complicated to be handled properly in this forum. You need a professional who can examine all of the details of your situation and advise you on how to handle it.

As a general rule, all of your income is subject to tax by the state where you are a resident, no matter where the income is from. So it's quite possible that you were required to file a tax return for 2022 in your home state. Any income that you earn for working in a particular state is also subject to tax by the state that you worked in, even if you are not a resident of that state. States have various arrangements to avoid having the same income taxed by more than one state. The details of those arrangements depend on the specific states involved.

You certainly were a resident of your home state until you went to the first other state to work. You might have been a resident of your home state for the entire year, depending on that state's definition of a resident. Working in another state does not necessarily make you a resident of that state, but again it depends on the specific rules of each state. Because the states have different definitions of a resident, it is possible to be considered a resident of more than one state at the same time.

When you go to the tax professional, bring all of the documents that you have for 2022: the letter from the state, your W-2s, the tax returns that you filed, etc. You might also want to bring similar information for 2023 and ask the tax pro to look that over also.

[Hal_Al]

From the information you provided, for 2022, you were a full year resident of your "home state" ( address on your driver’s license). As such, you must file a resident return for that state.  Chances are that the credit(s) you get for taxes paid to the other states will wipe out any tax due to you home state.  Filing a 2022 return, with a letter of explanation should take care of the fees. 

That's the general answer. For a more specific answer, we need to know which states are involved, as there are variances in the general rule.  One thing, in particular, is the issue of "reciprocity". 

[TomD8]

"I never earned a dime in my home state so filing wasn't an option." 

Unfortunately, that's not true.

Your home state (your domicile state in tax terminology) can tax all your income, regardless of where you earn it.

Temporary absences for school or work do not constitute a change in domicile.  For example, a resident of New Jersey who lives in Massachusetts temporarily to attend college, remains a resident of New Jersey for tax purposes.

Since your absences from home in 2022 were temporary in nature (you did not actually move to any other state), it appears that in fact you were at fault for not filing a 2022 tax return in your home state.  That said, you were correct to file non-resident tax returns in states in which you earned income.  Your home state will give you credit for the taxes you paid to non-resident states.  But you must always file in your home state.