1. Filing state income taxes requires a separate return. If your state requires that you file state income taxes, you’ll have to do it separately from your federal income tax return. That’s because the federal government and your state’s government are separate, and you file and pay income taxes to each separately.

Is there a difference between state and federal tax return?

There’s very little difference between state and federal withholding taxes. The chief distinction is that state withholding is based on state-level taxable income, while federal withholding is based on federal taxable dollars.

Do you have to file state taxes if you don’t pay federal taxes?

Even if you aren’t required to file a federal tax return, you may still have to file a state return. Seven U.S. states do not assess income taxes, so if you live or work in one of these states, you do not file a state tax return for income earned in that state, regardless of the amount or type of income.

Do you have to file a federal tax return if you get a refund?

If you make more than a certain amount and your income is from certain sources, you are required to file a federal return, even if you’re getting a refund. When it comes to state returns, there is no one-size-fits-all answer, as every state has different laws regarding income taxes.

Do you have to file taxes if you are a resident of a state?

Each state has its own set of rules about whom it considers a “resident” and their own minimum filing requirements. Most states, but not all, also allow the foreign earned income exclusion in determining taxable income.

Can you file federal and state tax returns together?

States That Allow Federal and State E-Filing. These states have made filing state income taxes more convenient by allowing taxpayers to submit their state tax return to the IRS along with their federal tax return: Alabama. Arizona. Arkansas. Colorado. Connecticut.