Question

I have a question about double taxed income. If I report non resident income tax on my resident return and my non resident return, won’t I be double-taxed?

Answer

Regarding double taxed income, when filing taxes in multiple states, you usually won’t be double-taxed on your resident state return on income earned in a non resident state.

  • Because there are many taxpayers who are filing taxes in two states, many states provide a credit for residents who pay state taxes to a non resident state.
  • Some states have reciprocal agreements with border states that reduce or eliminate taxes for residents of states who work in a non resident, reciprocal state.

Related Topics

Related Resources

The IRS, Bitcoin, and Other Virtual Currencies | H&R Block

Have you found yourself wondering how the IRS classifies Bitcoin? Our tax pros discuss relevant IRS Bitcoin law and notices. Learn more with H&R Block.

Holiday Bonus Taxes

Congratulations on the Bonus! Learm more about the tax rate at H&R Block - whether you receive a holiday or cash bonus, it will apply to you.

What Is Cryptocurrency? | H&R Block

What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.

Bitcoin Income: Exploring Capital Gains & Stock Value | H&R Block

Have you recently earned Bitcoin income from rising stock value? Explore the rules surrounding cryptocurrency-sourced capital gains and losses with H&R Block.