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

Reporting Disability Insurance Payments On Taxes

Should you report disability insurance payments as income on your taxes? Learn more from the tax experts at H&R Block.

Reporting Roth IRA Contributions

Learn more about reporting Roth IRA contributions with advice from the tax experts 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.

Capital Gains Tax Exemption on House Sale

Learn more about the capital gains tax exemption on the sale of a home with the experts at H&R Block.