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.
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