It depends. If you are not a resident of North Dakota (ND) then the IRA and HSA deductions would not apply to their state return. They would apply to your resident state return.
- If you have ND income from wages and did not perform work in ND then you would be filing that tax return for a refund of any tax withheld.
- If you did perform work in ND, even though you did not live there, then you do have taxable income for ND.
For number 2 above, if this describes your situation, See the instructions below.
State Returns - Your resident state requires you to include all worldwide income. Assume both states require income tax returns to be filed:
- Report the income on each state return that is from the nonresident state
- Report it on your resident state and receive credit for taxes paid to another state.
Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state. Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
In most cases complete your nonresident state first.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
