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A state can tax the income you earned from sources within that state plus any income from any source that you earned while a resident of that state. So, for example, if you lived in California but took a temporary two-week job in New York, then NY can tax only the income you earned in NY, but California can tax all the income you earned everywhere, including the income you earned in NY.

Sometimes, two states have reciprocal tax agreements. If a resident of Ohio works in Indiana, wages earned in Indiana are not subject to Indiana state income tax, but they are subject to the county tax. However, other types of income from Indiana sources (business, casino winnings, etc) are still subject to Indiana income tax.

What most (but not all) states do is to ask you to first list all of your income from all sources and compute the tax on that as if it were all taxable. Then on a separate form or in a separate column on the same form, they ask you to list how much income was taxable in that state and then compute a ratio. For example, if your total income for the year was $100,000 and the income taxable in the state was $10,000, then the ratio would be 10%. You then multiply the tax you computed by the ratio in order to determine how much you owe the state.

Your state may be different. Follow the instructions on the form. Most states have a special form for non-residents or part-year residents. It's either a completely separate form or an attachment to the form that full-year residents use.

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12y ago

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