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Insights Into Filing Tax Returns In More Than One State

According to US tax laws US citizens who work and live or earn income from business or property in more than one state will have to file more than one state tax return. As far as a federal tax return is concerned you only need to file one return.

  • Keep track of where your income originated through the year. The W-2 forms will record relevant details.

  • Find out what residency means and how it applies in your case. Have you lived in more than one state during the tax year? If in doubt seek answers and guidance from a tax professional.

  • In case the income comes from property owned in another state you must determine what rules apply. Find out how taxes are calculated and what you must do.

  • State tax forms are available through the mail and internet so obtain all essential forms well in advance. There are part-year resident forms, non –resident forms, as well as combined forms. See:,,id=99021,00.html .

  • While calculating the taxes take into consideration taxable income, credits, deductions, liabilities, and waivers. Use a reliable reference. Get instructions from the IRS and follow the guidelines. See

  • Find out what reciprocal agreements between states are for tax payments and about credit on dual-taxed income. There are separate forms for taxes paid in one state for income originating in another.

  • Whether it is individual or business taxation you must unravel the mysteries of multi-state taxation laws and ensure that you file tax returns correctly. Otherwise back taxes, interest payments, and penalties will be hard to deal with.

    State tax returns like Federal tax returns can be e-filed. So, make use of electronic tax filing and ease your problems. Online tax preparation programs are designed to automatically fill information pertaining to state and federal tax forms appropriately.

  • The advantage of preparing Federal and State tax forms together is that the software automatically transfers relevant and common data into relevant forms.

  • The software will apply all relevant tax deductions and uses self-help tools to simplify the filing process.

  • You can e-file federal and state tax returns once all the data is fed in and forms checked.

  • The multi-state online tax preparation program selects and fills out the appropriate IRS forms and answers all tax related questions see: , and what is more it is recommended by the IRS.

    There are in place, what are known as state tax payer assistance help lines. Make use of these and get answers to any questions or queries you may have. In case you are thinking about hiring a tax professional then make sure the person is conversant with multi-state tax return filing and is qualified to do the needful in both states. If you undertake tax filing systematically you should have no problems. And, the World Wide Web hosts many state as well as federal web sites that address tax filing, returns, and all information concerned with taxation in the US which makes available at the click of a mouse online filing systems, laws, as well as detailed articles on filing tax retruns.

    About Author:

    Barry Allen is a freelance writer for Online Tax Firm, the premier website to find tax, return tax, tax software, free tax filing, sales tax, services tax,income tax, property tax and many more.

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