You may be required to submit more than one state income tax return if you work in one state and live in another. This is frequent for remote employees, but it also applies to employees who travel across state lines to get to work. Other factors, such as
relocating throughout the year, may influence the state you file in.

How to file taxes when you live and work in different states?

If you make money in one state while residing in another, you should expect to submit a tax return in the state where you live (where you live). You may also be required to submit a state tax return in the state where your employment is situated or in any state where you have an income source.

Is it obligatory for you to file taxes in two states?

It is conditional. Some states have an agreement that requires out-of-state workers to file solely in the state where they dwell. These states have a reciprocal tax arrangement, often known as reciprocity.

If your home state and your place of employment do not have reciprocity, you can plan to submit two state tax returns: one as a resident and one as a nonresident. It’s also worth noting that if you reside or work in one of the nine U.S. states that don’t
have an income tax, you won’t have to submit a return for that state. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are among the states that do not levy income taxes.

If you are forced to file in more than one state, how can you avoid paying double taxes?

Federal law prohibits two states from taxing the same income. If the states do not have reciprocity, you will usually be given a credit for the taxes withheld by your employer.

What is a non-resident state return?

Being a nonresident indicates that you have not resided in a state where you make a living for any portion of the year. If you work in the state but do not live there, you must complete this form.

If you relocated throughout the year, where should you submit my state taxes?

If you permanently relocated to another state, you must submit two state returns: one for each state in which you resided during the tax year (assuming both states charge income tax).

You may be eligible to claim part-year residency, allowing you to split your income between the two states rather than paying taxes twice. It is important to note that each state has its unique laws for defining residence and indicating your status on tax forms. Check with the Department of Revenue in each state to find out what is needed for your specific case.

How can you submit state taxes if you work for an out-of-state company remotely?

Tax laws range from one state to the next. Your income tax liability may vary depending on the state you live in, but you should plan to file taxes in both states: one as a resident for the state where you live and another as a nonresident for the state
where you work.

Is it still possible to file jointly if your spouse worked in a different state than you did?

Yes. You can file jointly and declare all of your income on your federal income taxes.

You will declare both of your incomes on your resident state return for state taxes (if your state charges income tax). You’ll file a separate return for the state where you/your spouse works, reporting only the income generated there.

What state do you file in if you’re in the military and stationed somewhere other than your home state?

Military personnel must select a “legal domicile” or state of legal residency (SLR). This is the location where you will pay your state income taxes. If you are stationed anywhere other than your SLR, you are not required to pay state taxes unless you
receive civilian income in addition to your military salary.

Military spouses may be eligible to claim the same state of legal residency as their partner, but they must satisfy specific criteria