Which State Do I File With?

[LaneLeroux]

Hello, I live in CA but opened a therapy practice in Nevada. I go to Nevada maybe 3 days out of the week to work in person. Do I file with CA or do I file with NV? Thank you

[KrisD15]

You will file a resident California state tax return and claim all your income. Usually the resident state will give you a credit for income taxes you pay to another state; however, since Nevada has no state income tax, you will only pay to California.

[Hal_Al]

You report all your income on your resident state return, including the income earned in the other state. Your home state calculates tax on all your income, but gives you a credit, or partial credit, for tax you paid to the other state.

When you worked in a state without an income tax (e.g. Nevada), there will be no credit, since there was no NV tax. In other words, 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.