Support CenterHow do I exclude Income Earned from another state with no income taxes? - Taxpayer earned income in a state with no state income tax (such as Nevada, Florida) but is also reporting taxes to another state with state income taxes (like Arizona, California). How to exclude taxes over income earned from
If AZ (for example) is the home state, taxpayer will pay taxes on all income earned regardless of where the work was performed.
Residents pay tax on all of the income (from all sources) they received during the calendar year. Residents get a tax credit for taxes paid to any other states.
Since Nevada does not collect an income tax on individuals, you are not required to file a NV State Income Tax Return.
However, since a state like NV does not withhold any taxes, there will not be any credit for taxes paid to another state, so taxpayer must pay taxes on all income to the home state.
If taxpayer is non resident of AZ, add the AZ 140NR form and use the RES/NR Worksheet under Misc Form to indicate the income that should be taxed in AZ.
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