Make sure that it’s done and that it’s right before you start your state returns. That’s not so hard, right? Next, you need to make sure you do your tax returns in the right order:Īlways do the federal return first. This is the dollar amount the state says that you owe them for taxes before they take into account what you’ve already paid through your withholding or estimated payments. It will say “ tax liability” on your state income tax form. Tax liability is a number computed when you prepare the state tax return. Tax liability: This is not your refund or the amount of money that was withheld on your W2. In this example, Missouri is the non-resident state. The state you work in (but don’t live in) is called the non-resident state. If you live in Illinois, then your resident state is Illinois. There will probably be a check box or something like that in your computer program. The state you live in is called your resident state. Today I’m going to talk about doing your tax return when you have two states to deal with.įirst, the technical words you need to know: That’s pretty common here in Saint Louis where we have lots of folks living in Illinois that come over the river to work here and vice versa. I get a lot of questions from people about working in one state and living in another.
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