Do I still need to file a Federal tax return while living in a tax-free state like Nevada?

Yes, you absolutely need to file a federal tax return regardless of which state you live in. Federal taxes are completely separate from state taxes - they're collected by the IRS, not your state government. The good news is that living in Nevada means you don't have to file a state income tax return. Nevada is one of the seven states with no income tax (along with Wyoming, Washington, Texas, South Dakota, Florida, and Alaska). If you lived in or earned income in another state during part of the year, you might need to file a state return for that state. TurboTax will walk you through this based on your residence history and income sources. TurboTax won't "deduct 100% of income taxes" as that's not how the system works. It will calculate what you owe federally based on your income, deductions, credits, and withholdings throughout the year. Living in Nevada doesn't change your federal tax obligations at all.

I was struggling with exactly this same issue after moving to Texas (another no income tax state). I was completely confused about what I needed to file and kept getting conflicting advice from friends. I finally found this service called taxr.ai (https://taxr.ai) that analyzed my situation and gave me super clear guidance specific to my circumstances. It explained that federal taxes are required regardless of where you live, but confirmed I didn't need to file a state return for Texas. It also flagged that I still needed to file a partial-year return for my previous state since I had income there before moving. The tool even explained exactly what forms I needed and why, which saved me a ton of confusion.

Just wanted to follow up that I tried taxr.ai after seeing this thread and it was super helpful! It walked me through exactly why I needed to file federal returns despite living in a no-tax state, and explained that my remote work situation created filing requirements in another state that I hadn't even considered. Saved me from making a pretty big mistake since I was planning to ignore that other state completely. It gave me a detailed breakdown that made way more sense than the confusing IRS website. Definitely helped me understand my tax situation way better than I did before.

If you need to talk to the IRS about any questions (like residency issues or special circumstances), good luck getting through on the phone! I spent DAYS trying to get a human on the line last year after moving between states. Finally found a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 15 minutes. They have a demo of how it works here: https://youtu.be/_kiP6q8DX5c It was a lifesaver because I had questions about my moving expenses and residency status that weren't clearly addressed anywhere online. The IRS agent was able to explain exactly what forms I needed based on my specific situation. Way better than trying to interpret the vague info on the IRS website or waiting on hold for hours.

Well I need to eat crow on this one. After being completely skeptical, I tried Claimyr because I was desperate to resolve an issue with my withholding after moving to Nevada. Was absolutely shocked when I got connected to an IRS agent in about 20 minutes after trying unsuccessfully for weeks. The agent confirmed that yes, I still needed to file federal taxes (obviously), but also explained exactly how to handle my partial year residency in my previous state. She walked me through the specific forms I needed and even explained a special situation with my retirement account transfer that would have definitely messed up my filing. Saved me a ton of stress and probably avoided an audit!

Important note: if you earned income in multiple states during the year, you might need to file a partial-year resident return for your previous state. I moved from California to Nevada mid-year and still had to file a CA return for the part of the year I lived and earned there. Don't assume moving to a no-income-tax state means you're completely done with state taxes for the year you move!

EVERYONE still has to file federal taxes no matter what state you're in!!! the only question is whether you need to file STATE taxes which for nevada you don't. But feds? Yeah the IRS still wants their cut lol

Just to clarify a few things that might help - you'll definitely need to file a federal return if your income meets the filing requirements (generally $13,850+ for single filers in 2024). Living in Nevada is great because you won't need to file a Nevada state return at all. However, if you had income from your previous state before moving to Nevada, you might need to file a part-year resident return there. Also, make sure your employer updated your address with payroll - sometimes they keep withholding for your old state even after you move, which can create complications. TurboTax should handle this correctly if you enter your move date and income information accurately. It will ask about your residency status and guide you through any multi-state filing requirements. The key is being precise about when you moved and where your income was earned throughout the year.