You usually need to file a nonresident state tax return if you earned income in a state where you don’t live.
This happens when a state taxes income earned from sources within that state, even if you’re not a resident.
When do I need to file a nonresident return?
You may need to file a nonresident state return if you earned income in another state from sources such as:
Wages earned while working in that state
Gambling winnings
Rental income from property located in another state
Certain types of military income
Each state sets its own rules, so requirements can vary.
When don’t I need to file a nonresident state return?
You generally don’t need to file a nonresident return if:
You only earned interest income from an out-of-state bank account
The state where the income was earned doesn’t collect income tax
States with no state income tax include:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Texas
Tennessee
Washington
Wyoming
How do state rules differ?
Every state has its own filing requirements for nonresidents. To confirm whether you need to file, review guidance from the Department of Revenue for the state where the income was earned.
What if I’m a military member?
Military taxpayers follow special residency rules. Two common terms are used:
Home of Record (HOR)
Your home of record is the state recorded when you entered military service. This is often the state you continue to use as your tax home as you move between duty stations.
State of Legal Residency (SLR)
Your state of legal residency is your official tax residence while on active duty. It’s usually the same as your home of record unless you formally change it.
Changing the state listed on your paycheck doesn’t change your SLR. To update it, you need to submit DD Form 2058, and it must be accepted by your finance office.
From a tax standpoint, your SLR is considered your resident state, even if you’re stationed elsewhere.
Key takeaway
You generally file a nonresident state return when you earn income in a state where you don’t live. Because rules vary by state—and special rules apply to military members—it’s best to confirm requirements with the appropriate state tax.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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