Author Donald Gianassi
Posted Mar 2, 2023
Filing multiple state tax returns can be a daunting task. However, if done correctly, the benefits of filing multiple state tax returns could be significant. For those who have moved from one state to another during the course of the year, lived in multiple states for various periods of time, or own property and investments in different states, filing multiple state taxes can result in significant savings and deductions.
The rules for filing multiple state tax returns vary from state to state and can be complex. Depending on where you live or earn income from, there may be exemptions and credits available that you wouldn't have access to had you only filed one return. It's important to understand how these rules apply to your financial situation so that you can maximize the potential benefits associated with filing multiple returns.
For individuals who qualify for filing more than one return, understanding all of the potential deductions available is key to ensuring that they are taking full advantage of their tax opportunities while minimizing their overall liability. Knowing how to navigate the complex landscape of multi-state taxation can save individuals hundreds or even thousands of dollars a year.
When Circumstances Demand It: Filing Multiple State Returns
In 2015, the Supreme Court issued a ruling requiring taxpayers to file multiple state tax returns if they had lived in more than one state during the tax year. This means that if you move from your home state to another during the tax year and do not complete a resident return, you may be required to file both resident and non-resident returns for the new state. Sixteen states, including Washington D.C. and Columbia additionally require that taxpayers who are required to file multiple state tax returns must also pay taxes to each of those states.
Fortunately, there are ways taxpayers can avoid filing multiple state tax returns. For example, some states allow taxpayers who move out of their home state during the tax year to take a credit on their non-resident return for taxes paid in their former home state. It is important for taxpayers to familiarize themselves with the requirements of each of their possible states of residence and check whether or not they qualify for any credits or deductions based on their individual circumstances before submitting any tax returns.
The Supreme Court decision requiring taxpayers to file multiple state tax returns has created an added burden on people moving from one place to another during a given tax year, but it does not have to be complicated as long as taxpayers are aware of all the applicable rules and regulations for each potential jurisdiction in which they had residency during that time period.
For taxpayers who move between states during the year, filing multiple state tax returns can be complicated. If you find yourself in this situation, it's important to understand what type of return each state requires. Generally, if you are a part-year resident of one or more states, then you will need to complete a part-year resident return for any state where you were physically present during that year. On the other hand, if you were not a resident of any state for the entire tax year, then you may need to file a nonresident return in each state where you earned income. Knowing which type of return to complete is essential to make sure all your taxes are accurately filed and paid.
Maximize Your Refund: Get the Most Money Back
Maximizing your refund is one of the most important parts of filing multiple state tax returns. With TurboTax Free Edition, you can easily answer simple questions and quickly get the most money back on your simple tax returns. Whether you're filing for one state or many, TurboTax Free Edition makes it easy to get the biggest return on your taxes.
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Filing multiple state tax returns can be a tricky task. To figure out the right amount of state income taxes to claim, you need to know which states you’re required to pay taxes in. Tax-free states exist, but in most cases, you’ll need to file a return for each state you worked in if you earned more than the required minimums. When filing your federal tax return, make sure to watch our video tax tips for helpful information on how to properly submit your multiple state filings. The taxcaster tax calculator and estimate my turbotax customer im can help you easily calculate your state taxes, as well as see what tax bracket and rate of taxation applies to your situation. Make smart financial decisions with our w-4 withholding calculator and get a bigger refund with our self-employed tax calculator. With TurboTax Self-Employment Tax tools you can accurately calculate self-employment income and deductions so there are no surprises when it comes time to file. There’s also our charitable donations calculator, crypto calculator, and estimate capital gains/losses from cryptocurrency sales — all designed to help you find deductions for your 1099 contractor/freelancer/creator side gig.
Making a Cross-State Move for Employment
Moving to a new state for work can be an exciting opportunity, but it can also present some unique challenges when it comes to filing taxes. If you’re moving cross-state for employment, you may need to file both a resident tax return in your home state and a nonresident tax return in your work state. This is because of the Wynne decision, which prevents states from providing tax credits to taxpayers who file out-of-state resident returns. To avoid a double tax hit, the income received in the work state is effectively subtracted from any taxes owed in the home state.
However, this doesn’t necessarily mean that filing multiple state tax returns will guarantee less taxes due overall; depending on the rate of taxation in each state, you could end up owing more than if you filed only one return. As such, it’s important to understand exactly how much income you earn in each state and calculate all applicable taxes accordingly before deciding which route makes the most financial sense for your situation.
Navigating Life As Long-Distance Spouses
Navigating life as a long-distance spouse can be a big problem for military families, who often have members living in multiple states. This can also create state residency issues when it comes to filing taxes, and couples may even find they owe taxes to different states if they don't properly exempt prior residence states.
Frequently Asked Questions
Can you file state and federal tax returns separately?
Yes - you can file your state and federal taxes separately. To learn more about the process, check out our helpful guide on filing taxes in [State].
Do I need to file a part-year return for each state?
Yes, if you lived in more than one state during the tax year, you may need to file a part-year return for each state. Depending on your situation, filing multiple returns may be required. See our guide for more details.
Do I have to file taxes in multiple states?
Yes - in certain situations, you may be required to file taxes in multiple states. Depending on your state of residence, the states where you work or conduct business, and other factors, you may need to file a separate tax return for each state. Learn more about multi-state filing requirements here.
Can I file multiple state returns?
Yes, you can file multiple state returns. Learn more about how to do this and what you need to know with our comprehensive guide.
What states have a free file program?
The Free File Program is available in all 50 U.S. states – allowing eligible taxpayers to prepare and file their federal income tax returns for free! Learn more about eligibility and how to access the program for free today.