I live in Kansas as I have for many years. I've always worked for a Kansas company, but in June of this year I began working for an Alabama firm, that withheld Alabama payroll taxes. This year, do I need to file both a Kansas and an Alabama tax return? Since I'm a KS resident, will I owe taxes on the same money in both states? Any help would be appreciated.
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Yes, you will need to file a return for both Kansas and Alabama as Kansas.
Yes and no, it depends on which state has a higher tax rate.
In general, your home state will tax all in come from all sources. What you will do is you will file a nonresident return for Alabama first. Then you will fill out your Kansas resident state return, claiming a credit for taxes paid to the nonresident states on your Kansas return. You may or may not still end up owing money to your resident state depending on whether or not their tax rate is higher or lower than your nonresident state. If the non resident state had a higher tax rate than your resident state, your credit will be limited to the amount of tax you would have paid to your resident state. They will not give you a refund of the taxes you paid to the nonresident state.
File Non Resident State Return
Thank you for the quick response. I've sued TurboTax Deluxe on Macintosh for years, but I noticed the Alabama return form is an incremental $40; do you recommend I buy/download this (and does it produce the form 40NR return that Alabama requires)? Or should I just us the online form that Alabama's site has?
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