wikiHow Glossary of Tax Terms for Filing in 2 States * Resident - An individual who lives and works in a particular state for the majority of the year, and is subject to that state's tax laws. * Nonresident - An individual who lives and works in a different state for the majority of the year, and may still be subject to taxes in their home state. * Part-year resident - An individual who lives and works in two different states during the tax year, and is subject to both states' tax laws. * Taxable income - The portion of an individual's income that is subject to state income tax. * State tax forms - Forms used to report an individual's income, deductions, and tax liability for a given tax year in a particular state. * State tax rates - The tax rates applied to an individual's taxable income in a particular state. * State tax credits - An amount of money that can be subtracted directly from an individual's state tax liability, reducing the amount of tax owed. * State tax deductions - An expense that can be subtracted from an individual's taxable income in a particular state, reducing the amount of tax owed. * Reciprocal agreements - Agreements between two states that allow individuals who live and work in both states to pay income taxes only in their home state. * Tax treaties - Agreements between the United States and other countries that provide rules for the taxation of income earned by individuals in both countries. * Taxable income allocation - The process of allocating an individual's taxable income between two different states based on where the income was earned. * State tax return due dates - The deadlines for filing state tax returns in different states, which may be different from the federal tax return deadline. Note: This is a basic list, and there may be additional terms and concepts related to filing taxes in two different states that may be relevant depending on your specific situation. Page