Expert Out-of-State Tax Return Services
Did you recently move from one state to another?
Do you work for an employer who is in a different state?
Do you live in one state while your spouse works for an employer in another state?
Do you need to file taxes for more than one state?
Filing an Out-of-State or Nonresident Tax Return
It’s more common than you might think for someone to live in one state while being employed in another. You might have to file a nonresident tax return if you’ve earned money in a state where you don’t live, in addition to a resident tax return with your home state. But some states offer exceptions from this rule, and the federal government won’t let you be taxed on the same income twice. You may be domiciled in one state, but your employer maybe in a totally different state and may be withholding taxes per their state.
Below, we’ll go over a few hypothetical cases where you may have to file taxes in multiple states.
Example 1: You live in Austin but work in San Francisco. In this case, you will file as a resident of Austin and a non-resident of San Francisco.
Example 2: You live in Cedar Park, and your father in Kansas passed away, leaving you the family farm that continues to do business. You will have to file as a resident of Cedar Park and as a non-resident of Kansas until you sell the property.
Example 3: You live in Round Rock and work remotely for a tech startup in California. You will file as a resident of Round Rock, and Round Rock only. It does not matter where the headquarters of your company is located. Instead, you are taxed on where the work was completed, which in this case, was Round Rock.
Filing taxes in two states can be a headache, especially if you don’t know which form(s) to fill out and how to apportion your taxes if needed.
That’s why consulting with a professional tax expert is important to file out-of-state or non-resident tax returns. 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, Lakeline Tax can help with a variety of other tax-related issues, such as tax resolution and tax representation.
Bottom line, when tax season comes around and you need to file taxes in multiple states, keep these key takeaways in mind:
If you were a permanent resident in two or more states in one year, you might need to file two part-year tax returns.
If you reside in one state but work in another, you may need to file a state tax return for the state you work in, the state you live in, or both.
Some states have reciprocity agreements with each other, which means you will only have to pay taxes in the state you live in if you meet the criteria.
There are lot of different rules that varies from state to state. It is very complicated to know all the various rules in each state, especially, when you have moved from a state to a new state. At Lakeline Tax, we are experts in filing all the 52 states tax return along with your federal. We have subject matter specialists who can guide you in the right direction and file your taxes accurately.
Click here to schedule an appointment and see how Lakeline Tax can find significant tax savings for you.
Lakeline Tax provides tax preparation services for everyone including Self-Employed Tax Return, Business Tax Preparation, Partnership & Corporate Taxes, Book Keeping, Tax Planning, Tax Resolution. No matter what your needs require, you’ll benefit from our experience, expertise, and Friendly customer services. We are serving the clients from Austin, Cedar park, Leander, Liberty Hill and all the major cities in Texas. The other states we cover for out-of-state tax return filing are : Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
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When you live and work in different states, you typically need to file state taxes in both states. Your resident state, where you live, will tax your total income, including earnings from both in and out-of-state sources. The nonresident state, where you work, will usually tax only the income earned within that state. It’s essential to check each state’s tax laws, as some may have reciprocal agreements that impact your filing requirements.
To avoid double taxation, you can usually claim a tax credit in your resident state for taxes paid to the nonresident state. Filing as a part-year resident or a nonresident in the state where you work is common in these situations. Consulting with a tax professional or using tax software that handles multi-state filings can help ensure accurate and efficient tax compliance.
A nonresident state return is a tax filing submitted by an individual who earned income in a state where they are not a resident. This situation commonly arises when someone works in a state different from their primary residence. Nonresident state returns are necessary to report income earned within that specific state. You’ll file this form if you work in a state but you don’t live there.