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March 27, 2025
Question

If I earn income from investment accounts in one state, do I need to pay income tax on that income in my state of residence?

  • March 27, 2025
  • 1 reply
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I earned income from an investment account in a state without an income tax, but did not sell any assets and simply had the account value appreciate. Listing the income on my federal return automatically applied it to my tax return in my state of residence. Should this happen? If not, how can I have TurboTax not apply that income to my state tax return?

1 reply

March 27, 2025

Yes, you must and report and pay income on all income to your resident state (if they have an individual income tax).  In general, investment income is sourced to your resident state regardless.