I have a son who lives in Baltimore MD, he has income from Illinois, and Virginia QUESTION IS does he needs to fill out all three states for income or just IL and Virginia...jims
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Work, Earn, Reside
It depends your son meeting the various states' filing requirements
The filing requirements are:
Maryland - Maryland AGI at least $8,750 and have Maryland source income.
Viginia - Virginia gross income of $7,000 or more
Illinois - required to file a federal return or has Illinois source AGI greater than the Illinois exemption.
Income is taxed on where one works, earns it, and resides.
Depending on your son's tax residency, he may be eligiable for a credit on taxes paid to another state while a resident.
Since there are so many different requirements you should consult a tax professional. -
No Maryland Income
If he is a Maryland resident, he should file all three states. I don't know a lot about MD state taxes, but almost all states require reporting of all income for their residents.
And then take a credit for the taxes paid in IL and VA.
He could still end up paying some Maryland tax. For example, if the tax in IL is at a 4% rate, and the tax rate in MD is 6%, he will receive credit for only 4% on his MD return, so there will be some tax left over. For all states I know of (except Wisconsin), the credit will be the lower of the resident state or non-resident state.Comment
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