While filing for state tax, can I use the incomes that I earned in Colorado state only, instead of total income from all states? I have two W2s.

[abhion92]

I have already filed my federal and have to file colorado state tax. While filing for state tax, can I use the incomes that I earned in Colorado state only, instead of total income from all states? I have two W2s. One W2 as a graduate student, I worked as a teaching assistant in Colorado. Another W2 for working as an intern during summer in Las Vegas, NV. During the year 2016. My residence has been Colorado for all the time, even though I temporarily worked for 3 months in Las Vegas. In the federal return 1040A, I have declared incomes from both the W2s. As you know Nevada doesn't have state taxes but only federal. But while filing for state taxes I want to show the income from employer in Colorado state only. So can I do this?

[Patrice]

You would indicate in the return that you lived/worked in 2 different states. Then, TurboTax will be prompted to prepare the 2 state tax returns separately. You would more than likely want to prepare 2 part-year resident returns. (Part-year CO and Part-year NV).  TurboTax will ask you the questions that will guide you on how to enter and allocate the income that you made in each state and help you determine what is taxable in each state.

Since Nevada doesn't have a state income tax then you would not have to pay state taxes on that income. 

*Note: In most cases, you have to file a state return for each state that you lived in or earned income in.  But some states do not have a state requirement.  Seven U.S. states currently don't have an income tax:Alaska, Florida, Nevada, South Dakota, Texas,Washington and Wyoming. And residents of New Hampshire and Tennessee don't have an income tax but they do pay tax on dividends and income from investments.

[abhion92]

However, when I am filing the Colorado state tax, they ask for the taxable income amount shown on 1040A (the federal return which I already filed). Here the taxable income is a total of incomes from both states (Nevada and Colorado). So regardless of this case can I go ahead and type only the amount that I earned from Colorado ? Would it lead to a rejection?

[Patrice]

Unfortunately, NV income is taxable in CO if CO is your resident state.

The normal rules for interstate taxation are -
--- you file a non-resident return for the states where you worked but did not live, reporting only the income earned in that state.
--- you file a resident return for the state you live in reporting all of your income, no matter where it was earned.  You claim on your home state resident return a credit for taxes paid to other states that you worked in.  If the out of state income was from a state without an income tax, you would have no credit.

The result of these rules is that you will pay tax on the income, but only once, and the net result is it will be at the tax rate in the higher tax state.  (If the nonresident state is a non-income tax state like Nevada, Florida, Texas and others, the result will be that you still will owe taxes in your home state.)

There are some exceptions to this rule, but Turbotax can handle them.

Turbotax provides information on filing multi-state returns here:<a rel="nofollow" target="_blank" href="http://turbotax.intuit.com/support/kb/general-program-issues/entering-your-data/338.html">http://tur...> and here:  <a rel="nofollow" target="_blank" href="http://turbotax.intuit.com/support/kb/e-file/ef-rejections/1951.html">http://turbotax.intuit.com/sup...>

[SteamTrain]

I agree....that's always the case for a temp job in another state when you are a resident of another....you are subject to the taxes in NV first (except they don't tax income) , and then CO for 'everything"....

Don't attempt to go down the part-year NV/CO resident route....you never became a resident since you were there only temporarily.