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March 19, 2025
Question

State filing

  • March 19, 2025
  • 1 reply
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I live in Nebraska but have some farm trust income from Iowa so I file two state returns.  Someone said it is important to complete one of the returns first.  If true, which return should I complete first?

    1 reply

    March 19, 2025

    You want to file the nonresident Iowa first.  Full-year residents are taxed on all income, regardless of the source or where derived- but you will receive a credit for taxes paid to other jurisdictions (in most cases and definitively in yours) so you are not taxed twice on the same income at the state level so you have to calculate your nonresident tax first so you know the amount to enter for the credit.