Why do I owe taxes to a state I didn’t earn money in.

[zec8473]

My permanent address is in Alabama, but I worked in other states throughout the year. I did not enter a W2 or any other form for Alabama, yet the app says that I owe $143. Is there a way to fix that?

[DoninGA]

Since Alabama is your resident state then all income from all sources is taxable on the Alabama state income tax return.

[Hal_Al]

This is the general rule: The income is work state (WS) source income since it was earned there. Resident States (RS) tax all their resident's income, regardless of where earned. You will file a non-resident tax return for the WS and report the WS income. You will file a full year resident return for the RS, reporting all your income. The RS will give you a credit, or partial credit for any tax paid to the WS.