
Quoting
Taxing Matters
Not expressly, but they do so indirectly. Both states have a high degree of conformity to the federal tax code. They both start with your federal adjusted gross income (AGI) to compute your state tax. The federal earned income exclusion is an an adjustment you make in determining your AGI. So, since it reduces your AGI, it also reduces the baseline for computing your state tax, too. From there, you make certain adjustements to your AGI to determine your state taxable income. But neither state requires an addition back to state income for the foreign earned income exclusion amount you took on your federal return in computing your AGI, so the end result is that this amount is excluded from your state income tax returns, too.