How to File Taxes With One Resident State & Multiple Non-Resident States
Any state you made money in may require you to pay income tax and this can result in you filing taxes in several different states. You will receive a different W-2 form from your employers for each state you must file taxes in. You must maintain your own records of income from other sources, such as a small business, rental income, or property sales involving more than one state. Keep careful track of where this income is earned to report it correctly, or you could face steep penalties and fines.
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Instructions
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Check your W-2 forms to see which state they are for. Your employer is responsible for withholding taxes to the correct state.
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Determine which state you owe taxes to for any other income you have that did not come from an employer. You will typically owe taxes to any state in which you earned income, unless that state has a reciprocal agreement with your home state. A reciprocal agreement means that you pay taxes to your home state rather than to the other state that you made money in.
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Obtain a non-resident income tax form for each state you owe income tax to but do not live in, and a resident income tax form for you home state. These are available on the state revenue department websites for each state.
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File each non-resident form, reporting only the income you earned in that state. Retain one copy of each form for your records.
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File the income tax form for your own state, reporting all income you made, including your out-of-state income. You will be able to claim a credit on the form for the taxes you paid to other states. This credit will directly reduce the taxes you owe to your home state.
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Tips & Warnings
Keep careful financial records throughout the year noting which state you made money in to make tax time easier.
If you are claiming the state and local tax deduction on your federal income taxes, add the taxes you paid to all states,.
