Most taxpayers by now have filed their state income tax returns (or, if they haven’t, they should have). While that’s never a fun or convenient process, taxpayers with the misfortune of having income tax nexus in multiple states had it a bit harder than everyone else. Those taxpayers were required to file an income tax return not just for their state of residence, but in other states as well. This entailed a complicated process of paying income taxes to other states, then claiming those taxes paid as a credit against their home state’s tax assessment.
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