In this case, you may need to file multiple tax returns. If you live in one state and work in another, there are some circumstances under which you will need to file two tax returns. Meanwhile, nonresident aliens must pay tax on income earned only in the US (and/or income connected with US trade or business). Every worker in the US – whether resident or nonresident – is required to file tax documents in the US. In this guide, we’re going to cover the key points a temporary visa holder needs to know about filing tax returns in multiple states. The laws of the two states where you live and work will determine how you file taxes if you don’t live in the state where you work.

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• File with a tax pro At an office, at home, or both, we’ll do the work.
• If you do have to file income taxes in multiple states, you generally won’t owe double taxes on income earned.
• If you have reason to believe that filing taxes in more than one state is required, it’s better to be safe than sorry.

Find out more about resident, part-year resident, and nonresident state tax returns. Thus, you will complete what looks like a federal tax return, however you will not e-file the federal return at checkout, but print to mail and file your state return. In 2015, the Supreme Court ruled that two different states couldn’t tax the same income. The ruling is good news if you moved out of state because it means you won’t be subject to double taxation on your earnings.

Filing taxes in more than one state sounds intimidating, but it doesn’t have to be.

As long as you don’t work in another state for more than 30 Do I Have To File Taxes In Multiple States? out of the year, you’ll only need to file taxes in the state you live in. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Arizona charges a top state tax rate of 4.5% and California charges a top tax rate of about 12%.

• You will file your taxes for the state you reside and work in if you’re working remotely, regardless of where the company is actually located.
• If they work in a different state, they might have to file a return for that state with only the income they earned there.
• There are some instances where you are required to file multiple income state tax returns when filing your taxes.
• Because you must file a tax return in the state where you live, living in two states in a single year might result in having to file multiple tax returns.

That’s why consulting with a professional tax expert is important. Our team of dedicated tax professionals will assist you if you lived in two states and with how to file taxes if you worked in two different states. Not only that, Community Tax can help with a variety of other tax-related issues, such as tax resolution and tax assurance. If you lived and worked in the same state this past year, filing taxes is a fairly straightforward process.

Is my state tax residency the same as my federal tax residency?

As an example, if a taxpayer lived in Virginia and moved to Georgia during the year, the wages they earned during the time they lived in Virginia were taxed until the day they officially moved to Georgia. After they moved, they began paying taxes to Georgia and ceased paying Virginia state tax. A few situations may require you to file taxes in more than one state. If you were a permanent resident in two or more states in one year, you might need to file two part-year tax returns. Below, we’ll go over a few hypothetical cases where you may have to file taxes in multiple states. Sixteen states and the District of Columbia additionally have agreements in place between them that will let you avoid filing more than one state tax return if you live and work in these jurisdictions.

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• Each state allows people to file “partial year resident” returns.
• Life and disability insurance, annuities, and life insurance with longterm care benefits are issued by The Northwestern Mutual Life Insurance Company, Milwaukee, WI .
• Or a state may calculate the tax on all of the income as if you were a resident, and then allocate the tax based on in state sources as a percentage of all sources.
• In Georgia, for example, you must have state taxes withheld from your pay after you’ve worked more than 23 days, earned more than $5,000 or earned 5 percent or more of your income for the year in Georgia.

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Tax Brackets

Each state allows people to file “partial year resident” returns. This means that the states in the agreement have made paying taxes to each state easier on the worker. Some methods will affect whether the employer is required to withhold for each state and the calculation of the amount to withhold for each state. When you move from one state to another, you can expect there to be some tax implications.

You should also report the income on your resident return. For example, let’s say you live in Georgia, but own a rental property in Alabama. You earned $30,000 in revenue from the property and paid Alabama $3,000 in taxes. However, Georgia also taxes your $30,000 income from the property because you live in that state. Instead of collecting another $3,000 in taxes, Georgia will give you a $3,000 tax credit because you already paid taxes on the property in Alabama.

If you moved home – from one state to another – you may be required to file dual state tax returns. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company and its subsidiaries. Life and disability insurance, annuities, and life insurance with longterm care benefits are issued by The Northwestern Mutual Life Insurance Company, Milwaukee, WI .

Sprintax can help you to determine your residency status for both federal and state tax. When filing your taxes, the first thing you need to do is consider where you lived during the tax year – both permanently and part-time. However, if no reciprocity agreement is in place, you may have to pay tax in both states.