Do you need to file a nonresident state return?

Generally, you’ll need to file a nonresident state return if you made money from sources in a state you don’t live in.

Some examples are:

  • Wages or income you earned while working in that state
  • Out-of-state rental income, gambling winnings, or profits from property sales
  • S Corporation or partnership income
  • Beneficiary income from a trust or estate
  • For active-duty military: non-military income earned outside your state of legal residence
  • If your employer withheld taxes for the wrong state

You don’t need to report interest income from an out-of-state bank account on a nonresident return. It only needs to be reported on your federal and resident state return.

Every state has its own rules regarding nonresident returns. If you’re not sure, your best bet is to contact the Department of Revenue in that state or visit their website. Most state websites have a section devoted to nonresidents and part-year residents.

If the other state happens to be Alaska, Florida, Nevada, South Dakota, Texas, Tennessee, Washington, or Wyoming, you won’t be able to file a nonresident return because those states don’t collect income tax. However, you’ll still need to report that income on your resident state return (assuming your resident state collects income tax) as well as your federal return.

Contact Clergy Financial Resources to help you with the next steps.

Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: 1 (888) 421.0101
Fax: 1 (888) 876.5101

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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

For more information or if you need additional assistance, please use the contact information below.

Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
Fax: (888) 876-5101


If you would like to learn more about our tax services designed for clergy or payroll, bookkeeping or HR designed for churches, please complete the request form to have an advisor contact you.

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