Do I Get Credit for Taxes I Paid to Another State?
Usually, if you are required to file taxes in multiple states, you might be eligible for a credit for taxes paid to another state. Various state laws provide these credits so that you don’t pay taxes to multiple states on the same income.
Note: A credit for taxes paid to another state is different from reciprocity agreements, which allow residents of one state to request an exemption from tax withholding in another state.
Resident Credit for Taxes Paid to Another State
As a resident of one state with income from another state, you might be able to receive a credit for taxes paid to the other state. Ex: If you work in Kansas, but live in Missouri, you can request a resident credit for taxes paid to another state (in this case, Kansas).
Not sure how to claim credits for taxes paid to another state? If you’re using one of H&R Block’s DIY products, we’ll walk you through this process. If you’re working with one of the pros in an H&R Block tax office, we can explain how it works and take care of all of the filing for you.
Tax preparers can have various designation and specialties. Learn how different types of tax preparers at H&R Block can help you in person or virtually.
Virtual tax preparations let you complete your taxes online from the comfort of your home. Find out how easy remote tax preparations can be at H&R Block.
Learn how to deduct student loan interest with H&R Block. Get information about qualified education expenses and see if a student loan tax deduction applies to you.
What’s the difference between an enrolled agent (EA) vs. a certified public accountant (CPA)? Explore the roles of EAs and CPAs at H&R Block.