Regardless of whether you're a part-year resident or a nonresident in the state where you are working, you will probably need to complete an apportionment schedule if you have income in more than one state. Or a state may calculate the tax on all of the income as if you were a resident, and then allocate the tax based on in state sources as a percentage of all sources. ![]() ![]() Some states separate the income, and tax only their state's income. Part-year residents follow each state's rules. Since the person is a California resident, California also taxes the $20,000, but gives a $2,000 tax credit for the tax you paid to Arkansas. The resident reports only the $20,000 to Arkansas and pays $2,000 in tax to Arkansas. Residents typically get a tax credit for taxes paid to any other state.Įxample: A California resident receives $20,000 from a rental building in Arkansas. ![]() In most states, residents pay tax on the income (from all sources) they received during the calendar year. How do I know how much I owe in each state?
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