How does this process affect state income tax? Will I still need to pay?

The 12-411 process is a federal process—meaning it is structured under federal law and guarantees full compliance and success at the federal level. While most states that impose an income tax typically reciprocate the results of your federal filing, we can only guarantee success federally.

That said, in the vast majority of states, once your income is legally reclassified and filed under the 12-411 process, your state return will reflect Wealth Guaranteed Company, ETO. (737) 285-4285 THE ONLY CERTIFIED ZERO INCOME TAX PROFESSIONALS WITH A ZERO INCOME TAX LIABILITY GUARANTEE Wealth Guaranteed Company, ETO c/o Post Office Box 2531, Atascadero, California [93423] NON-DOMESTIC, ZIP CODE EXEMPT, WITHOUT THE UNITED STATES $0 in taxable income. If you’ve had taxes withheld by your state, our NoTaxPros will file your return in a way that generally results in a 100% refund of those withholdings.

However, two states—Indiana and New Jersey—are known for pushing back more aggressively on alternative filings. While we still handle the preparation and submission of your state returns in those cases, outcomes may vary, and we advise clients to be aware of those unique challenges.

To summarize:

This is a federal process.

State tax agencies typically follow the federal lead.

We guarantee federal success.

State success is typical, but not promised—especially in Indiana and New Jersey.

As a lifetime client, if anything ever changes with your state situation, our team will step in and support you accordingly.