I understood this instruction to mean I should answer "yes" if I have income from any of the things listed below, even if that income was made in my home state. However, the responses are not consistent with this understanding. Based on the response choices, I could reinterpret the question to mean, "Also, select yes if you made income from any of the below IN OTHER STATES." It is not clear how I should answer this question. Please clarify.
How is that question unclear? You are being asked if you worked and/or earned money in any OTHER state than the one you said you live in.
Perhaps you are right. However, it is a two part question:
(1) "Did either of you make money in any other states?"
(2) "Also, select yes if you made income from any of the below"
My answer to part 1 is "no."
My answer to part 2 is "yes."
If both parts of the question apply to "other states" then part 2 is unnecessary and confusing or, if meant to clarify the types of income from other states, it would clearer if the two parts were integrated and the "also" omitted. For example, "Did either of you make money in any other states, including income from sources such as ..."
Yes I believe it means the other income is from other states as well. Sounds like the first part means make money from working. They want to cover other kinds of income you might get from the other states.
I also found it unclear. The statement "Also select Yes if you made income from any of the below:" should include the words "in any other states". I am answering "No" but I did have rental income in my home state.
What I don't understand is what defines making income in another state? I work for my company from home in WA for a company in OR. It is not out of convenience. It is a 3.5 hour commute to my company's office. Is that considered making income in another state or in my state of residence? For example, in 2018 I lived the first half of the year in OR before moving to WA, and since then I've worked from home for this company. That year I paid OR income tax only the income I made during the time I was living and working in OR. Based on that I expect for 2019 I won't pay any OR income state tax. My employer has not deducted any OR income tax for work in 2019.
How do I answer this question "Did Either of You Make Money in Any Other States?" in TurboTax Deluxe Edition 2019?
If you worked from home in WA and did not work in OR, then you did not make any money in another state.
Your resident state has a claim on all of your income. A non-resident state has a claim on the income you made in that state.
Generally speaking, the income has to be made somewhere. So if you are working at home in State X for an employer who is in State Y that income would be State X income and subject to taxes in State X only (assuming State X is your resident state). If you lived in State X and worked in State Y, both State X and State Y would have a claim on your income. If we assume there is no reciprocity agreement between the states, then you would pay taxes in both but you would receive a tax credit in your resident state so that you are not taxed twice on the same money.
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For the 2021 tax year, the question includes the caveat:
If you made money in Alaska, Nevada, South Dakota, Tennessee, Texas, Washington or Wyoming, leave your answer as Select a state. That's because you don't pay income tax in these states.
I worked in New Hampshire for which I received a W-2. NH is not in the above list, but they don't have an income tax. I originally selected NH from the list. That causes Turbotax repeatedly prompted me that I need to file a tax return for NH, which:
- They don't have
- I've never done before.
So I went back and changed my answer to:
No, we didn't make money in any other states.
That's my story and I'm sticking to it.
Your mileage may vary.
I have the same question you have. The prompt is entirely unclear!! I'm going to assume it means other forms of income (such as rental income) IN OTHER STATES. Sometimes I wonder who writes these things?!?!!!
For a little clarity, the question "Did you make money in any other States?" refers to situations outside your home state, other than:
- Interest from an out-of-state bank or account. No need to file a return in that state; just report it on your federal return as you would for in-state interest.
- Out-of-state employer. Don't file a return in your employer's state unless their payroll department accidentally withheld taxes for their state instead of your resident or work state. More info
- Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming. These seven states don't collect personal income tax. However, if you earned money in one of these states but live in a state that does collect income tax, you are required to report the income on your resident state return. More info
- State reciprocal agreements. You won't have to file 2 state returns if your resident and work states have a reciprocal agreement and you submitted the proper exemption form to payroll. This article has info about both.
This article fully explains situations where you might need to file a state income tax return: When would I have to file returns in more than one state?
I believe the confusion is with the part "Also, select yes if you made income from any of the below:" this statement doesn't clarify if its referring to the listed examples of income belonging to income from OTHER STATES only.
For example: if I sold a home in my home state, do I now need to select Yes to this question? or do I only select Yes to the question if the sale of the home happened in OTHER STATE that is not my home state.
This is exactly the type of problem that caused me to switch to another provider ten years ago.
It only goes to reinforce the fact that Intuit still does not have tax professionals working on their interview process.
Programmers with no practical business experience do not make useful analysts.