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Do I have to file tax returns in more than one state?

by TurboTax Updated 6 months ago

These are the most common situations for needing to file multiple state returns. Select yours below to learn more.

If you were a resident of two different states during the tax year, follow these steps. This doesn't include temporary moves for short-term work or school if you intend to return to your home state.

Income gets reported to the state it's earned in. Generally, this means out-of-state workers have to file a return for their work state in addition to their resident state (excluding reciprocal agreements and non-income tax states). Examples include:

  • Out-of-state students who earn income in the state where they attend school
  • Employees who regularly commute across state lines, like New Jersey residents who work in New York
  • Employees who perform work in other states on assignment

Typically, you'll file a nonresident state return for the state you worked in and pay that state's tax. You'll then get a credit for taxes paid on your resident state return.

If your out-of-state business or rental property generates income, you'll need to file a nonresident return in that state.

But even if it doesn't, the state may require you to file a return anyway, or you might file to take advantage of state-specific credits, such as property tax credits. Check with the state Department of Revenue for state-specific info.

Here are some common situations where you don't have to file a second state return:

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