How do I file taxes when I worked in two different states?

How are you suppose to file your taxes if you have worked in two different states in one year?

• Answer:

  Your Federal taxes aren't affected by this. State taxes are. You'll file a normal return in the state of your residence and generally a non-resident return in the state where you worked as a non-resident. The state where you worked as a non-resident is entitled to tax the income you earned in that state only. The state of your legal residence is entitled to tax your entire income but in virtually all cases will give you a credit for the taxes paid to the other state. If you moved between states, the rules are muddied a bit -- generally each state will only tax the income you earned while a resident of that state regardless of where it was earned. You may be required to file as a "part year" resident or even as a non-resident for the year where you had two domiciles. In any case, you'll have to carefully review the rules and filing instructions for both states before you file your returns.