Nonresident State Tax Return Thresholds by State

Does a state make a nonresident file, and is there a minimum?

A state can make a nonresident file when the nonresident earns income there, and each state writes its own test. There is no national minimum. Some states require a return for any in-state income, some follow the federal filing requirement, and some set a dollar amount.

A case is not simple when the tests use all your income, not just the in-state part: a small in-state amount can trigger a return when your total income is large. Several states also tax K-1 income, or wages for days you worked at home. Gather income by state, every K-1, withholding statements and the days you worked in each place.

What is each state's nonresident filing test?

Every state with an individual income tax, and the District of Columbia, is below, from each state's own latest published return instructions (the preceding tax year). Amounts are for a single filer unless stated; other filing statuses, ages and dependents have different amounts. Check the current instructions before filing.

Where a row says "required to file federally", the state's own page does not give the federal dollar amount; it is in the IRS instructions for Form 1040.

Which income counts as state-source: wages, K-1s, rent, business, a property sale?

Income counts as state-source when it comes from work done in the state, property in the state, or a business carried on there. The states below say so in their own instructions, and the details differ.

A fund's K-1 can carry income from several states; see state returns for fund investors. Whether a business must file in a state is a separate test, covered in business income tax in other states.

Which states have no individual income tax, and do any still reach a nonresident?

Florida, South Dakota, Texas and Wyoming say they have no individual income tax, and Tennessee says its Hall income tax is repealed. Check Alaska, Nevada and New Hampshire on their own revenue sites.

Washington taxes long-term capital gains. Its questionnaire asks whether tangible personal property was located in Washington when sold and, for intangible assets, whether Washington was your permanent home at the time of sale. What a business owner still pays there is in states with no income tax: what an owner still pays.

Do reciprocal agreements let me skip a nonresident return?

Reciprocal agreements let residents of one state skip the other state's tax on wages only. Business income, K-1 income and gambling winnings still count, and you often still file to recover tax an employer withheld by mistake.

Virginia and Maryland list wage-only exceptions without calling them reciprocal. Virginia excuses commuters from Kentucky and the District of Columbia, and residents of Maryland, Pennsylvania and West Virginia, with conditions. Maryland excuses wage-only residents of the District of Columbia and Virginia who kept no Maryland place of abode for more than six months, residents of West Virginia whatever their time in Maryland, and residents of some Pennsylvania localities that do not tax Maryland residents. West Virginia lets residents of Kentucky, Maryland, Ohio, Pennsylvania and Virginia with only withheld wages complete a short Part II instead of the full nonresident schedule; that is still a return. For a state not listed, check its instructions before assuming there is no agreement.

Does withholding, a composite return or a group return already satisfy the duty?

Withholding alone does not end the duty in the states whose instructions address it: they treat it as a payment, and tell you to file to claim a refund if you are under the minimum. A composite or group return can replace your own return in some states, but only if you qualify and are actually included.

For the other states, the pages read did not say composite or withholding ends the duty, so treat the return as still due until you confirm. Composite returns, K-1 withholding and PTET credits are in state returns for fund investors, and the entity's side is in fund state returns and nonresident withholding.

A few days of work or a small K-1: do I still file?

Most states count wages from the first day, but a few have a short-stay rule. Each has conditions; several exclude athletes and entertainers or require that you have no other income in the state.

A small K-1 follows the state's ordinary test. In states that test all your income, a small K-1 can still require a return when your total is high, and in no-minimum states any K-1 income requires one. Combining several funds' K-1s into one return per state is covered in state returns for fund investors.

What if I missed a nonresident return?

A missed nonresident return is usually fixed by filing the late return on that year's form, with the state's income and any withholding. Penalties and time limits differ by state; check the state's own rules before relying on a date.

Start with each year: which states paid you or issued K-1s, and the income and withholding for each. A state that withheld from your pay may owe you a refund only if you file. Do not skip an old year because the amount looks small; the table above shows several states with no minimum. The steps for a state notice are in state returns for fund investors, and the federal side of many missed years is in catching up on unfiled returns.

Example

All figures are in US dollars and are illustrative. Each case uses the latest published instructions in the table above.

A New Jersey resident with Pennsylvania wages

A New Jersey resident earns 12,000 in wages for work done in Pennsylvania and has no other Pennsylvania income. Pennsylvania's test is gross taxable income above a very low amount, so 12,000 passes it. But Pennsylvania and New Jersey have a reciprocal agreement: Pennsylvania does not tax a New Jersey resident's wages that are subject to employer withholding. If the employer withheld Pennsylvania tax, the resident files a Pennsylvania return reporting zero compensation to claim it back, and reports the wages on the New Jersey return.

A Texas resident with a California rental share

A single Texas resident under 65, with no dependents, receives a 3,000 K-1 share of California rental income. California's test counts all income, not just the K-1. If the person's only income is that 3,000, the total is below the California all-source amounts in the table, so no California return may be required. If the person also has 40,000 of other income, the total is above both amounts and a California return is required to report the 3,000 of California income.

A Florida resident who works six weeks in Georgia

A Florida resident earns 2,000 a week for six weeks of work in Georgia: 12,000 of wages, out of 120,000 of pay for work in all places. With that pay the person must file federally, so Georgia's basic test is met. Georgia's small-wage exception covers wages up to the lesser of 5 percent of that pay (6,000) or 5,000, so the limit is 5,000. The 12,000 is above it, so Georgia requires a return. A withholding statement does not end the duty: it is a payment toward the tax, and it also shows the Georgia wages to report.

Different for you?

• You are an investor with K-1s from several funds, carried interest or composite returns: see state returns for fund investors and fund state returns and nonresident withholding.
• You own a business or sell into other states: see business income tax in other states and pass-through entity tax by state.
• You were paid after moving away: see state tax on deferred pay after a move.
• You are a nonresident alien with US business income: see nonresident return for business income.
• You live in a state with no income tax: see states with no income tax: what an owner still pays.
• You have missed returns in several years, or many states or K-1s: this needs professional judgment on residency, sourcing and credits. See individual tax for what to bring: income by state, every K-1 and withholding statement, and prior state returns.