State Tax Returns for Taxpayers in States with No Income Taxes

How to add state income tax returns for a resident in a no income tax state?

Article, Solution:

If you reside in a state without state income taxes, you still might have to file one or more state income tax returns. For example, if you worked or generated income in one or more states with state income taxes, you may have to file a nonresident return for this state. First, have your tax forms ready, including W-2 and 1099 forms which include any applicable federal and state information.

The easiest way to generate your state return is to follow the tax interview. At the end of the Name & Address section, you will be prompted to add your state return. Then, proceed through Federal Taxes. If you add state information to a form - for example, add your state taxes on the W-2 screen for your work - then eFile will automatically generate the state return based on these entries.

eFile Screenshot

If you live in a state with no income taxes but need to file a state return for another state, adding the state tax information will allow eFile to generate the return. You can add this on your income forms, such as the bottom of Form W-2 shown below or a 1099 form.

eFile Screenshot

If you live in a state with no state income tax, you may see this message:

eFile Screenshot

This means that you are not required to file state taxes based on the information you have entered at that point. Be sure to add any state tax withholdings on your tax forms if you do in fact need to file a return for a state which does impose an income tax.

You can also follow these steps to manually add your forms and see your state return:

Step 1: Sign in to your eFile account.

Step 2: Click on the Help link in the upper right and, in the search box, enter the name of the income tax reporting form (W-2, K-1, 1099, etc.).

eFile Screenshot

Step 3: View the various forms and click on + Add Form that describes your type of income. Here, add all the applicable information from your form and eFile will generate all the applicable federal and state forms required.

Step 4: On the right menu, click State Taxes or File and you will see one or more state tax returns listed if you elected to include your state return and have entered state tax information. To review all your state forms, click State Taxes in the left green menu; select the blue I'd like to see all my state forms on the right. Select the state drop down arrow and review the forms.

Before you e-file your returns, click on My Account, click on the PDF symbol, and review or download the PDF file of your return(s). You will also be able to view your return one last time during the eFile checkout process.

Visit this page for other state income tax return questions.