HomeNewsHere’s Which States Don’t Require You to File a Tax Return

Here’s Which States Don’t Require You to File a Tax Return

by Kati Michelle
(Photo Illustration by Scott Olson/Getty Images)

Tax season can be a stressful time for a lot of people. In addition to navigating deadlines and trying to avoid penalties, you need to stay up to date about the latest deductions and credits. And thanks to the ongoing pandemic, a backlog of last year’s returns may cause some frustrating delays in your returns this year. The good news is that you’re not alone and Outsider has your back.

Federal taxes are due April 18th. That day also marks when most state taxes are due. If you’re one of the lucky residents in these states, however, you won’t even have to file a state tax return. So read on to see if your digs make the cut.

Texas and Wyoming Among States That Do Not Require a State Tax Return

While most taxes aren’t due until mid-April, the laws do slightly vary from state to state. You can double-check your state requirements on the Federation of Tax Administrators website here. It’s also important to note that the IRS will allow for filing as early as January 24th (just a little over a week from now).

Because certain states do not collect income taxes, those states’ residents are exempt from filing state tax returns. It’s as simple as that for the following states:

  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming

There are two states that don’t quite make the list and where things get a little complicated. Tennessee and New Hampshire don’t technically tax earned income. However, they do tax investment income (think stocks and dividends). For this reason, those two states still require a return from some residents.

And that leaves the rest of us. The wide majority of residents in the United States will be filing both state taxes and federal ones. This includes all single and joint/married filers. The level of income tax will vary from state to state and also takes things like dependents into consideration.

If you moved to a new state within the past year, you will likely need to file more than one state tax return. Unfortunately, that’s also the case if you work in a different state than where you reside. This is becoming increasingly more common with the pandemic and the shift to remote work.

Know Your Rights

It can be really frustrating when an employer waits till the last second to send you your W-2 forms and other paperwork you may need to file your taxes. By law, your employer must physically or electronically distribute W-2s for the prior year by January 31st.

The 31st falls on a Monday this year, so the employers have until that Monday to get you what you need. If the 31st would have landed on a Saturday, Sunday, or legal holiday, they would have had until the following business day.