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Summary: Filing a tax return in two states requires finding out what forms are required for different states, keeping track of what income was made in each state and discussing options with IRS representatives in each state. Be sure to keep track of what type of income was made in each state with insight from a tax consultant in this free video on taxes.
Ken Lewellyn is co-founder of Tennessee Business Services, Inc., a Tennessee bookkeeping, tax and consultant firm which provides bookkeeping, tax and business advisory services to...read more
"For people that have moved or for people that are working in one state and living in the adjoining state, you typically have to file two returns. Sometimes you have to file a part-time resident return; sometimes as a non-resident. There are a number of different names and titles for these forms, and it depends on the state that you're working with or the states that you're working with as to which forms you'll need. The important thing is to keep track of where your income came from during the year and such things as did it come from property or what were the sources of the income so that you can allocate that to the proper state. And different states will handle the income differently, whether it be from property or from a standard job. Many states have reciprocal agreements with other states and you can get some credit for taxes paid in one state when you're filing in the other state. So you need to make sure you check that out and get what the states that are involved, and have them guide you through the process because each state is a little bit different."
eHow Article: How to File Tax Returns in 2 States