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Tax Preparation & Filing

Multi-State Tax Filing

Part-year, nonresident and multi-state business returns for people who moved, commute across state lines or work remotely.

Overview

How BATS handles multi-state tax filing

Moving, commuting across a state line or working remotely for an employer in another state can create filing obligations in more than one state. We sort out which states can tax which income, apply credits so the same dollar is not taxed twice, and file every return you need.

We work with clients in all 50 states and Washington, D.C., so state-specific rules are covered whether you are in one state or several.

Who this is for

  • People who moved to a new state during the year
  • Commuters who live in one state and work in another
  • Remote employees whose employer is based elsewhere
  • Businesses with employees, property or sales in several states
  • Owners receiving K-1s with multi-state income
What's included

Everything covered in this service

Residency and domicile analysis

Part-year and nonresident returns

Credits for taxes paid to other states

Income allocation and apportionment

Composite and withholding returns for pass-through entities

Business nexus review for income and franchise taxes

Key returns and forms

The paperwork behind multi-state tax filing

Key returns and forms
Part-year resident returnsFor each state you lived in during the year, such as California Form 540NR or New York Form IT-203
Nonresident returnsFor states where you earned income but did not live
Credit for taxes paid to other statesClaimed on your resident return to avoid double taxation
Composite returnsFiled by partnerships and S corporations on behalf of nonresident owners
Nonresident withholdingState tax withheld on pass-through income paid to out-of-state owners
State withholding certificatesUpdated with your employer when you move or change work location

What we'll need from you

Have these ready and your first meeting goes much faster. Don't worry if something is missing; we'll help you find it.

  • Dates you moved and both addresses
  • W-2s showing wages for each state
  • A calendar or log of days worked in each state
  • K-1s with their state schedules
  • Lease, purchase or sale documents for homes
  • Driver's license, voter registration and vehicle registration change dates
Start with a consultation
The process

How it works, step by step

  1. Map your year

    We build a timeline of where you lived and worked and where income was earned.

  2. Allocate income

    We assign each income item to the right states under their rules.

  3. Apply credits

    We claim credits so income is not taxed twice.

  4. File every return

    We file each state return and track acceptance.

Why BATS

Why clients choose BATS for multi-state tax filing

Reviewed line by line

Every return is checked against your documents and last year's return before it's filed.

Every state covered

Federal, state and local returns prepared together so nothing is missed or taxed twice.

Planning built in

We flag next year's savings opportunities while we prepare this year's return.

Help after filing

If the IRS or a state sends a letter about a return we prepared, we help you answer it.

Questions

Multi-State Tax Filing FAQs

11 answers to the questions clients ask us most. Don't see yours? Ask us directly.

Ask a question

I moved mid-year. How many returns do I file?

Usually a part-year return in each state you lived in, plus a nonresident return anywhere else you earned income. States with no income tax on wages need no individual return.

I work remotely for a company in another state. Do I owe that state?

Most states tax based on where you physically work, but a few apply a 'convenience of the employer' rule. We check the rules for your specific states.

Can I be taxed twice on the same income?

Your home state generally gives a credit for tax paid to the other state. Getting that credit right is a large part of what we do.

What makes me a resident of a state?

Usually your domicile, meaning your permanent home, plus statutory residency rules. Many states treat you as a resident if you keep a home there and spend more than 183 days in the state, even if you consider yourself domiciled elsewhere.

What are reciprocal agreements?

Some neighbouring states agree that commuters pay income tax only to their home state. For example, Illinois has agreements with Iowa, Kentucky, Michigan and Wisconsin. You file a form with your employer so the right state is withheld.

My employer withheld tax for the wrong state. Can I get it back?

Usually yes. We file a nonresident return to claim a refund from the state that shouldn't have received the tax and help you correct your withholding going forward.

Do I really need to track the days I work in each state?

Yes. High-tax states audit residency and remote-work claims, and a day-by-day record is the strongest evidence you can have.

Do states tax retirement income from my old state?

Federal law prevents states from taxing most pension and retirement plan income of people who no longer live there. Other income sourced to the old state may still be taxable.

How much does tax preparation cost?

Fees depend on the forms involved, the number of states and how organised your records are. After a short consultation we give you a written quote before any work starts.

Is my information secure?

Yes. Documents are exchanged through an encrypted client portal, and we follow a written information security plan as the FTC Safeguards Rule requires of tax preparers.

Can you prepare returns for prior years?

Yes. We prepare current and past-year federal and state returns, which is useful if you are catching up or amending.

Get help with multi-state tax filing

Book a consultation and get a clear plan for your taxes and books, wherever you are in the U.S.

Book a consultation