Are you working outside of the state in which you reside? Are you simply crossing a state line to go to work? Are you looking to file a non-resident tax in Toronto, Ontario? While some states will exempt you from having to file a non-resident tax return if you are just going across a state line for a local job, some can still force you to file one. Some people occasionally go to work in a different state if they visit family there for a couple weeks or months out of a year. Filing a non-resident tax return can be a task and confusing if you are unsure how to go about doing this, but if you follow directions, you can easily get this out of the way.
Determine how much money you have earned in another state. If you also made income in the state in which you are living, determine this amount as well. Complete a federal return before continuing on with the non-resident tax return process.
After listing the federal return, also list your income while being a non-resident. Add these together, and determine the percent of the nonresident income you have earned to your total income. This percentage can be used for your deductions and tax liabilities.
Distributing Income or Deductions
Multiply your taxable income by the percentage you found for your non-resident income. You may have to determine the taxable income in the specific state, acting as though you are a resident. This will determine your taxable income. Some states can make you multiple the non-resident percentages with your federal deductions. Maryland is one state that utilizes this method of taxing.
If you have moved, you may have to file a return for a part of the year. You may not need to file a non-resident return. You can check with your state to find out the process of filing a non-resident return.
If you want to learn more about non-resident tax in Toronto, Ontario, The Taxperts Group can provide you with information.
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