When it comes time to file your annual tax return, you may be asking yourself whether it is mandatory to file a copy of your federal return alongside your state return. Depending upon the state you live in, submitting this combination of forms may be required for your state return to be processed. Knowing how to locate this valuable information can help ensure that your taxes are files as efficiently and accurately as possible.
Tips
Depending upon the specific state you live in, you may or may not be required to submit your federal tax return alongside your state return.
Exploring General Rules
Although some states require you to submit your federal return alongside your state return, the reverse situation in which the federal government would require you to submit your state return is never the case. That being said, one important similarity between these two filings is that both returns have the same deadline for receipt. With that in mind, even though you likely will be sending these returns different places, you must ensure that both are completed within the same time frame.
Learning About Your State's Rules
Because the Internal Revenue Service has no specific authority over the taxation laws of your state, you must consult with the Department of Revenue or equivalent taxation department in your state to learn more about the filing instructions for your location. If you are preparing your taxes without the aid of a CPA or electronic filing service, the responsibility for determining whether or not you are required to jointly file your federal and state return with your state's taxation department rests on your shoulders. If, however, you are filing your taxes with the assistance of a CPA or an online service, this process likely will be much more streamlined.
Some Notable Exceptions
In a small number of states, you will not be required to file state income tax at all. These states are Alaska, Florida, Nevada, South Dakota, Texas, Wyoming and Washington. If you are a resident in any of these states, you can ignore the process of filing state income tax and focus solely on your federal return. Residents of New Hampshire and Tennessee must file a return only for income that stems from interest and dividends, though Tennessee intends to phase that out by 2021. An important point to remember, however, is as follows: if you live in a state that does require income tax reporting and you were paid in part from a state that does not require income tax reporting, you will still have to report this income in the state you currently live in.
References
- STATE | definition in the Cambridge English Dictionary
- Bankrate: Is a state with no income tax better or worse?
- 9 States with No Income Tax
- Harvard Law Review. "Comptroller of the Treasury of Maryland v. Wynne." Accessed Sept. 28, 2020.
- Michigan Department of Treasury. "Are My Wages Earned in Another State Taxable in Michigan if I am a Michigan Resident?" Accessed Sept. 28, 2020.
- Arizona Department of Revenue. "Withholding Exceptions." Accessed Sept. 28, 2020.
- Illinois Revenue. "What If I Live or Work in a State That Has a Reciprocal Agreement With Illinois?" Accessed Sept. 28, 2020.
- State of Indiana Department of Revenue. "Information Bulletin #28 Income Tax November 2016." Accessed Sept. 28, 2020.
- Iowa Department of Revenue. "Iowa - Illinois Reciprocal Agreement." Accessed Sept. 28, 2020.
- Kentucky Department of Revenue. "103 KAR 17:140. Individual Income Tax - Reciprocity - Nonresidents." Accessed Sept. 28, 2020.
- Comptroller of Maryland. "Administrative Release No. 37: Subject: Domicile and Residency." Accessed Sept. 28, 2020.
- Minnesota Department of Revenue. "Reciprocity Exemption/Affidavit of Residency for Tax Year 2019." Accessed Sept. 28 2020.
- Montana Department of Revenue. "North Dakota Reciprocity Agreement." Accessed Sept. 28, 2020.
- State of New Jersey Division of Taxation. "NJ Income Tax – PA/NJ Reciprocal Income Tax Agreement." Accessed Sept. 28, 2020.
- North Dakota Office of State Tax Commissioner. "NDW-R." Accessed Sept. 28, 2020.
- Ohio Department of Taxation. "Employee’s Statement of Residency in a Reciprocity State." Accessed Sept. 28, 2020.
- Pennsylvania Department of Revenue. "REV-419 Employee’s Nonwithholding Application Certificate." Accessed Sept. 28, 2020.
- Virginia Tax. "Reciprocity." Accessed Sept. 28, 2020.
- West Virginia State Tax Department. "West Virginia Employee's Withholding Exemption Certificate Form WV/IT-104." Accessed Sept. 28, 2020.
- State of Wisconsin Department of Revenue. "Individual Income Tax Working in Another State." Accessed Sept. 28, 2020.
- Michigan Department of Treasury. "Federal Military Spouses Relief Act." Accessed Sept. 28, 2020.
- State of New Jersey Division of Taxation. "Filing Status." Page 2. Accessed Sept. 28, 2020.
Writer Bio
Ryan Cockerham is a nationally recognized author specializing in all things innovation, business and creativity. His work has served the business, nonprofit and political community. Ryan's work has been featured at Zacks Investment Research, SFGate Home Guides, Bloomberg, HuffPost and more.