Can I E-File Multiple State Tax Returns?

If you live in one state but work in another or if you recently moved to a new state, you may be wondering if you can e-file multiple state returns. While you can file returns by mail for as many states as you need, you can only e-file up to three state returns.

Filing Taxes in Multiple States & Reciprocity Agreements

How you file your state tax returns if you live and work in different states depends on whether the two states have a reciprocal agreement.

Reciprocity agreements allow you to request an exemption from having state taxes withheld in your nonresident state. If the states have a reciprocity agreement, fill out an exemption request form for the nonresident state and submit it to your employer. Then, you’ll only file a return in your resident state.

You might also have to ask your employer to withhold taxes for your resident state or make estimated tax payments to the state you live in.

If both states collect income taxes and don’t have a reciprocity agreement, you’ll have to pay taxes on your earnings in both states:

  • First, file a nonresident return for the state where you work. You’ll need information from this return to properly file your return in your home state.
  • Next, file a resident return for the state where you live. To prevent double-taxation, the state where you live will give you a credit for taxes paid to the nonresident state.

Since each state’s tax rules are different, check the rules for your states before preparing your taxes.

Related Topics