Jump to content

Taxes working in different states


So my question is how does the taxing work as a traveler, if you live in one state, but work in another? do you have to file taxes in the state u are traveling to, or your taxes from your resident state? If you are taxed in both states, what was the best tax program you used to help you file your taxes on your own? i'm used to doing m own taxes with Turbo tax. I've used OLT also.

If you have a tax home (which enables tax free stipends if you work away from home), then you are required to file a resident income tax return in your home state. However, your work state always gets first crack at income taxes, and if your agency is paying you correctly, you will have paid income taxes in your work state. You are also required to file in every state worked (except a few states that do not have income tax).

While I cannot speak to how Turbotax does with multiple states, the process of doing them yourself is pretty easy. First do your 1040 or have Turbotax do it (FreeTaxUSA online is similar to the Turbotax question process, and is well, free for IRS returns). Then go online, and do each state's non-resident income tax return. They pretty much just flow from your 1040, and the amount of money earned in that state. Do your home state tax return last. It will credit you for taxes paid to those other states.

Returns are due today (or must be postmarked today if you have to file a paper return)! I did four tax returns a week ago in about two hours (after a couple months procrastinating), so it is doable.