Do I Get Credit for Taxes I Paid to Another State?

Usually, if you are required to file taxes in multiple states, you might be eligible for a credit for taxes paid to another state. Various state laws provide these credits so that you don’t pay taxes to multiple states on the same income.  

Note: A credit for taxes paid to another state is different from reciprocity agreements, which allow residents of one state to request an exemption from tax withholding in another state. 

Resident Credit for Taxes Paid to Another State

As a resident of one state with income from another state, you might be able to receive a credit for taxes paid to the other state. Ex: If you work in Kansas, but live in Missouri, you can request a resident credit for taxes paid to another state (in this case, Kansas). 

Not sure how to claim credits for taxes paid to another state? If you’re using one of H&R Block’s DIY products, we’ll walk you through this process. If you’re working with one of the pros in an H&R Block tax office, we can explain how it works and take care of all of the filing for you.