Out of state wages

Forum|Forum|6 years ago
February 22, 2020
3 replies
14 views

My individual client worked out of state in Texas (which has no state income tax) while he resides in Arizona. Does Arizona require that his Texas wages are taxes as part of Arizona wages? I can't see where in Lacerte to count them as just US wages while he is a full resident in AZ.

Lacerte Tax

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Just-Lisa-Now-

Intuit Community Champion

Resident states tax all income, no matter where you earned it.

If TX had state taxes, one of the states would give you credit for taxes paid to the other, so you wouldn't be double taxed....but TX doesnt, so you pay the tax to AZ only.

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itonewbie

Level 15

@sqliberty wrote:
My individual client worked out of state in Texas (which has no state income tax) while he resides in Arizona.

Can you elaborate what this means? Does he work in TX during the week and return to AZ for weekends? If he remains a tax resident of AZ, yes, his TX wages will be subject to AZ tax in full.

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J

jennyk

Level 2

I am having the same problem. I have a client that is a full-year resident in California but received wages from the end of the year from a Nevada company. When entering in Lacerte it wants you to enter a state tax identification number even though the Nevada W-2 does not have one. Any suggestions?

User_61

Level 7

Ohio residents, spouse has TX wage. To avoid the Critical OH e-File diagnostic in 10 Wages, Salaries, Tips > Employer Information > Employer state ID > enter "No State ID" (without quotes, it also worked with just an X)

That alleviates the Critical diagnostic. It creates a similar merely Informational Diagnostic.

I have yet to prove by actual e-File is it's ultimately accepted by Fed, and Ohio

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itonewbie

Level 15

@User_61Yours is a different issue, which has to do with state EIN. The OP issue is with the taxability of out of state income. If your clients were to file MFS and one is domiciled in TX, that'd be a different ballgame. But I agree that may do the trick with the question from @jennyk.

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