Category: Preparing a State Return

Preparing a state tax return is often a necessary step after completing your federal return, as most states require residents to file their own separate return. The process is similar to federal filing but focuses on state-specific rules.

How it works:

1. Federal Data is the Starting Point: Most states use your federal tax return information, particularly your Adjusted Gross Income (AGI), as the foundation for calculating your state taxable income. Our tax application automatically transfers this data from your federal return to your state return.
2. State-Specific Adjustments: While based on federal income, state returns have their own set of unique rules, deductions, and credits. Complete the state questionnaire in the State Info section of our site to apply these adjustments.
3. Residency and Filing: Your residency status is key. You’ll file a resident return, or a part-year resident return, for the state(s) where you live during the tax year. If you earned income in another state, you might also need to file a non-resident return for that state.

Ultimately, preparing a state tax return involves using your federal information and then making the adjustments required by your specific state’s tax laws to determine your final tax liability or refund.