How to File Multiple State Income Tax Returns
There are certain situations where you might find it necessary to file multiple state income tax returns. People who live in one state but work in another often find themselves in this position, as do taxpayers who receive investment income from an out-of-state source. Filing multiple state tax returns is relatively easy.
- Prepare your federal tax return. All states use information from your federal tax return to complete their state tax returns. It is not possible to prepare any state tax return until after you have completed your federal tax return. Obtain all of the required information from the W-2 that you have received from your employer.
- Prepare your non-resident state return. You are required to prepare non-resident state returns before you can prepare your residential tax return. This is because you must have the calculations of the final amounts owed or refunded from each state so that you can enter that information on your residential return. The amount that you owe or are being refunded can adjust the amount owed or refunded from your residential state return.
- Prepare your resident state return. The amount owed or the amount of refund will be adjusted accordingly, based on the outcome of your non-resident tax returns. Include each state's specific tax withholdings.
- Decide how you wish to receive your return. You can elect to receive a check in the mail or to have your refund electronically deposited into your bank account. Direct deposits are the quickest way to receive your tax return money. You will need to provide your bank's routing number and account number in order to receive a direct deposit of your return.
- File your tax returns. The easiest way to file your returns is electronically. Filing your returns electronically ensures that each state receives a copy of the appropriate income forms. If you decide to file by mail, it is your responsibility to include the state's copy of the required income forms when you mail your return.