I live full time in Idaho however I work in Utah. Do I only need to file state taxes in Utah or am I required to file in both?
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Yeah, you'll probably need to do both.
Utah can only tax the income that you earn in Utah.
Idaho calculates a tax on ALL your income, including Interest, dividends, capital gains (etc) ....then ID allows you to take a credit for the taxes you paid to UT (on just that income in UT)..so you don't get double-taxed.
......thing is..UT is a fairly flat tax rate (~5%) and ID is graduated (1.7-7.4%). So if you have enough income that ID will tax at the higher rate, then ID will collect the extra above 5% that UT didn't...and if you are in a lower IDaho tax bracket than 5%, then ID will only allow a credit up-to- what Idaho would have charged.
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Don't start on yoru state taxes until you are entirely done entering ALL of your Federal income and Deductions (sometime in maybe February) Then you must do the UT non-resident tax return first....then finally, the ID resident tax return.
Yeah, you'll probably need to do both.
Utah can only tax the income that you earn in Utah.
Idaho calculates a tax on ALL your income, including Interest, dividends, capital gains (etc) ....then ID allows you to take a credit for the taxes you paid to UT (on just that income in UT)..so you don't get double-taxed.
......thing is..UT is a fairly flat tax rate (~5%) and ID is graduated (1.7-7.4%). So if you have enough income that ID will tax at the higher rate, then ID will collect the extra above 5% that UT didn't...and if you are in a lower IDaho tax bracket than 5%, then ID will only allow a credit up-to- what Idaho would have charged.
___________________
Don't start on yoru state taxes until you are entirely done entering ALL of your Federal income and Deductions (sometime in maybe February) Then you must do the UT non-resident tax return first....then finally, the ID resident tax return.
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