What if the state I live in is different state than the state where I work?

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ToyotaDriver
ToyotaDriver Member, Star
edited August 2023 in State Filing

I live in one state and work in another state. How do I report the credit for taxes paid to another state?

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  • MatthewD
    MatthewD FreeTaxUSA Team
    edited August 2023 Answer ✓
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    Hey ToyotaDriver,

    Follow these steps:

    1.) On the Nonresident State Income screen, allocate all of the income you earned while working in that state to the state income column. Click Save and Continue.

    2.) Continue through the nonresident state until you get to the State Tax Summary screen, and write down the Nonresident State Adjusted Gross Income, the State Taxable Income, and the State Total Tax.

    3.) Complete the resident state return

    4.) When you reach the screen labeled Your Taxes Paid to Another State, click the yes option.

    5.) Enter all of the requested information, and click Save and Continue.

    After finishing the taxes paid to another state section, your resident income tax refund should go up significantly or your resident state tax due should decrease.