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New Member
posted Mar 22, 2018 9:22:34 AM

There's a pulldown list of states to add - why isn't Texas on the list?

I made some money in Texas so I guess I'll have to file a return - but TX is not in the pulldown list. Why not? 

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1 Replies
Level 9
Mar 22, 2018 12:31:45 PM

Texas is not included because they don't have an income tax. 

 

Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have income tax. Those residing in one of these states don't have to file a return in that state.

 

However, if you're a resident in a state that does have an income tax and you earned money working in one of these "tax-free" states, that income needs to be reported on your resident state return. And you can find the reasoning behind this here Why does tax-free income from Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, or Wyoming get taxed on my resident state return?

 

So for example,  if you're an Ohio resident and worked in tax-free Texas, you'd still have to report your Texas earnings on your Ohio return as well as your federal return.