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Level 1
posted Sep 25, 2024 10:31:04 AM

If you only have investment income from a state (as non-resident), how do you file so that you pay only state tax on that investment income? I want to make sure I'm not being taxed twice in my state of residency.

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1 Replies
Employee Tax Expert
Sep 25, 2024 10:35:40 AM

Hello,

Passive investment income is taxed to the resident state unless it's clearly source income like rental property in that other state.

You will need to file 2 State returns.

1. File a non resident return reporting the investment income ( as long as it's sourced in this state)

2. File you resident state return

 

Make sure you complete the nonresident state first and TurboTax will figure out and give you credit for taxes paid to the nonresident state on your resident return.