How to Figure a State Tax Return
If you want to figure your own state tax returns, you will need to complete a copy of your federal income tax return first. You will use information from your federal return to complete the state return to find out if you have a refund or owe money to the state. It is critical that all the information on your federal return is correct to minimize errors on your state return.
Other People Are Reading
Instructions
-
-
1
Fill out your federal tax return. This must be done correctly before you start your state tax return. You will use your adjusted gross income from this federal return to calculate your state tax return.
-
2
Fill in the first part of the state tax return. Enter your name, spouse's name, address and Social Security numbers for both you and your spouse (if applicable). Some state returns do have a section for listing dependents (children or anyone related that you support). You should always do the "support test" to see who qualifies as a dependent on your state. Some states go by the information you entered on your federal return and do not ask this information again. Support tests vary by state. Check with your state tax instruction booklet to determine who qualifies.
-
-
3
Enter your federal adjusted gross income from the federal form. All states differ as to where on the form this information is entered, but, for the most part, the words "Adjusted Gross Income" are in bold. On most state forms, you will be instructed to find your tax on this amount, which is your income before other deductions and credits are figured.
-
4
Enter any credits and deductions that apply to your particular state. For instance, Michigan has a credit for stillbirth. You must fill out a worksheet to determine the credit. For Wisconsin, residents under a certain amount of income can claim a "homestead credit" if a landlord fills out a "rent certificate" or they have a copy of their property tax bill. Every state has different credits and deductions. Pay close attention to these areas.
-
5
Enter the amount of state tax that was withheld from your income. Continue through the tax return until you reach the end with the final results. You will either have a refund coming or you will owe money to the state. Often, the result on your state return will differ considerably from the result on your federal return.
-
1
Tips & Warnings
Every state is different, but all have deductions and credits that can help lower your tax liability.
Read each line and follow any prompts as to what worksheet to use to reach the figure to enter on that particular line and continue, following the directions.
