Travel Nurse - Taxes paid to another state

[jennymland]

Hello! I am a travel nurse with a home tax location of Oklahoma. I worked a contract in South Carolina last year. When I am filing for my state return it asks if I was taxed on income from another state. I listed yes and it has me complete my Adjusted Gross Income and Tax Paid for that state. How do I answer this and as a travel nurse should I even be completing this section? Thanks!

[Hal_Al]

Here's a couple of references on that topic:

https://www.americantraveler.com/state-tax-questions

 and http://www.thegypsynurse.com/tax-home/

The general rule is: your report all your income on your home state return, even the income earned out of state. You file a non-resident state return for the state you worked in and pay tax to that state. Your home state will give you a credit, or partial credit, for what you paid the non-resident state. You will have to file a non resident SC state return and pay SC tax on the income earned there.. You will also file an OK full year resident return and calculate tax on ALL your income. OK will give you a credit, or partial credit, for the tax you pay SC. So, there will be little or no double taxation. Do the nonresident state return first.

[cu1424]

I'm a travel nurse whose Home state is Texas. Texas does not have state income taxes. How do I do the state income tax for Ohio. I worked their during COVID for 13weeks to help them. I paid Ohio weekly taxes while I was there for 13 weeks. 

But there is hearsay... some states are exempting travel nurses from state taxes. Is this true? What do I need to do? Let me know. Thank You 

[Hal_Al]

I haven't heard of Ohio (or any other state) exempting travel nurses from state taxes.  Try googling it (I found nothing).

You will have to file an OH non resident return.  

Ohio does a convoluted tax calculation for non-residents/part year residents. It calculates tax on total income, then it calculates a non resident/part year resident credit, which it subtracts from the tax it calculated on the total income. The credit is calculated as your non-Ohio income divided by Total adjusted Income multiplied by the total tax. TurboTax (TT)   does this by allocating your income as either Ohio or non-Ohio. W-2 income will be allocated by the state name abbreviation shown in box 15 of your W-2. TT will ask you, item by item, in the state section, how much of your other income is Ohio or non-Ohio income. Make sure that your non-Ohio wages show TX (Other state postal abbreviation)  in box 15 of your W-2 screen, with the TX amount in box 16.

Since TX does not have an income tax, boxes 15-17 may be blank on your actual W-2. At the W-2 screen, in TT, enter TX  in box 15. Put the box 1 amount in box 16 and  0 in box 17.

[KmKing]

Where can I find tax regulations for traveling nurses in general. 

I want to prepare as much as I can prior to going to tax person or filing online.

[Hal_Al]

I don't know that there are any regulations specific to travel nurses.

Here's an IRS article on out of town travel:

 http://www.irs.gov/taxtopics/tc511.html 

and some tax home articles, specific to traveling nurses. https://www.americantraveler.com/state-tax-questions

 and http://www.thegypsynurse.com/tax-home/

https://ttlc.intuit.com/community/state-taxes/discussion/re-how-to-file-exempt-from-state-income-tax...

[Gwenfa18]

@jennymland , my question is this then - NM specifically states "physically present 185d or more" or "physically present less than 185d", which would make me a part time resident. I was definitely physically present less than 185d for the calendar year. Would I still say I am a full-time resident? I definitely dont want to select the wrong one!

[TomD8]

@Gwenfa18 

We need more info in order to answer your question.

In what state is your domicile - your main, primary home? Is it New Mexico, or were you in NM temporarily while maintaining your domicile in another state?  If you were in NM temporarily, how many days did you live there during the tax year?

Finally, did you literally MOVE from one state to another during the tax year, thus changing your domicile?