State taxes

State tax preparation

Handled Tax serves clients in all 50 states. Detailed pages exist for our priority states. For any state, multi-state filings are handled as part of standard tax preparation.

Priority states

Detailed state guidance

Arizona

Arizona Tax Credits, Form 140 individual returns, multi state coordination, and part year residency for movers.

Arkansas

Home state. Graduated income tax, 529 plan deduction, retirement income exclusion.

California

Highest state tax rate, Mental Health Services Tax, AB 5 contractors, residency audits.

Texas

No personal income tax. Franchise tax (margin tax) for LLCs and corporations.

Florida

No personal income tax. Snowbird residency, corporate income tax for C corps.

New York

High combined state and city rates, convenience-of-employer rule, residency audits.

Any other state

All 50 states are supported as part of standard tax preparation. For specifics on your state, book a call.

Book a Call

Multi-state

What about clients with income in multiple states?

Multi-state filings are handled as part of standard tax preparation. The most common scenarios include remote workers, snowbirds, real estate investors with property in multiple states, and K-1 partners with pass-through income from out-of-state partnerships.

See multi state returns Read the multi-state guide

Authoritative sources

Federal and state references

Direct links to the IRS, SBA, and state revenue departments cited on this page. Outbound links open in a new tab.

How state taxes complicate a federal return

Federal tax is one return; state tax is potentially several. Anyone who lived, worked, owned property, or earned investment income in more than one state during the year may owe returns in each of those states. Handled Tax handles the high-traffic state combinations directly and refers more obscure pairings to specialists when needed.

The states with deep coverage on this site

Arkansas. Home state. AR1000, AR1000NR (non-resident), part-year residency rules, state credits, retirement income treatment.

Arizona. Form 140, part-year (140PY), non-resident (140NR), state-specific credits.

California. Form 540, 540NR, California Franchise Tax Board procedures, California-source income rules, exit-tax planning for residents moving out.

Florida. No state income tax — but residency, domicile, and intangibles rules still matter for anyone moving to or from Florida.

New York. Form IT-201, IT-203 (non-resident), the convenience-of-employer rule for remote workers, New York City and Yonkers add-ons.

Texas. No state income tax — but Texas franchise tax matters for businesses, and the moving-from-California pattern has specific planning steps.

The three patterns that produce multi-state returns

Remote workers. You live in State A but your employer is based in State B. Some states (notably New York) tax remote workers as if they worked in the state where the employer is — the "convenience of employer" rule. Other states grant a credit to your home state for tax paid. The exact mechanics determine whether you owe one state, two, or get a credit.

Mid-year moves. You moved during the tax year. Each state where you were a resident gets a part-year return covering the period you lived there. State sourcing rules determine where each dollar of income gets reported.

Non-resident income. You live in one state but earned wages, rental income, business income, or partnership K-1 income from another state. The source state taxes that income; your home state usually credits the tax paid.

Decision: how to think about state filings before you start

List every state where you lived or earned income during the year.

For each, determine your residency status (full-year, part-year, or non-resident).

Identify which income belongs to each state under that state's sourcing rules.

Determine which credits apply to avoid double taxation.

File in the right order — usually non-resident states first, then your resident state with credits applied.

If any of that feels uncertain, that's the engagement conversation. Multi-state is one of the easiest places to overpay (by miscounting credits) or underpay (by missing a state filing altogether).