When you move from one state to another during the tax year, you may have to report and pay state income taxes to both states. Not all states have income tax, but those that do, will expect part-year residence to report their income and pay at least some tax for the year.
Each state that imposes income tax has its own set of forms and rules. As a part-year resident, you may need a different income tax form than year-round residents’ use. This is very important to avoid paying unnecessary taxes.
Some states are very specific when it comes to partial residence filing. States like California, New York, and New Jersey may aggressively insist that you’re still a resident after you move, if they can find any justification.
If you move twice during the calendar year and end up living in three different states and depends on how many days you were a resident in each state, you might have to pay state income taxes in all three states. We can help you claim all applicable tax credits from the new states and avoid double taxation.
If you establish permanent residency in the new state, and rent out your house in your old state, you will most likely have to file an income tax return in your old state to report your income and expenses.
Other things like Interest Income, retirement income, employer paid moving expenses and state income tax deductibility need to be carefully considered when preparing your multi states taxes.
We, at Taxville financial, are licensed by the IRS on a federal level for all 50 states and can help you file your state tax return accurately. The last thing you want to happen is to get audited by a state you already left!
I really hope this information is helpful. You can request an in person or virtual appointment through our website home page or by calling us directly.
Michael Zachary, EA CPHRC