Which TurboTax Does a Multi-State Filer Need?
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If you lived in more than one state, moved during the year, or worked in a state different from where you live, you may need to file more than one state return. Common scenarios include relocating mid-year, living in one state and commuting to a job in another, or earning income from a property or business in a second state. Each state wants its share, but rules are in place so you're generally not taxed twice on the same dollars.
Your federal return is the foundation, and your state returns build on top of it. The federal edition you need still depends on your overall situation, W-2 versus self-employment, investments, and so on, but the multi-state piece adds state returns on top. The main thing to know going in is that each additional state return usually carries its own fee.
TurboTax Deluxe (Online)
Deluxe handles a typical multi-state W-2 situation well, transferring your federal information into each state return and helping you allocate income between states. Pick your federal edition based on your overall situation, then add states as needed. Just plan for the extra cost, because each state return is generally billed separately on top of the federal price.
Alternatives to consider
Resident, nonresident, and part-year returns
States classify you in different ways. If you moved, you'll often file part-year resident returns in both states, splitting your income by when you lived where. If you live in one state and work in another, you may file a nonresident return in the work state and a resident return at home. TurboTax asks about your situation and picks the right return types, but it helps to understand which is which so the allocation looks right.
Avoiding double taxation and extra fees
To keep you from being taxed twice on the same income, your home state usually gives a credit for taxes paid to another state. TurboTax handles this credit when you prepare the returns in the right order. Just be aware that each state return generally costs an additional fee in the online editions, so two states means two state charges on top of your federal price. Confirm current state pricing on the official site before you file.
Frequently asked questions
Will I be taxed twice if I worked in two states?＋
Generally, no. Your home state typically offers a credit for taxes paid to the other state, which prevents double taxation on the same income. TurboTax applies this credit when you prepare the returns correctly.
How much do extra state returns cost?＋
In the online editions, each state return usually carries its own fee on top of the federal price, so multiple states mean multiple state charges. Check current pricing on the official site before filing.
I moved mid-year. Which states do I file in?＋
Usually you file a part-year resident return in each state you lived in, splitting your income based on when you lived where. TurboTax walks you through allocating income to each state.
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