Multi-State Tax Returns

March 30, 2011 by Jan Roberg
Filed under: State Taxes, Uncategorized 

I get many calls from people who prepared their own returns with two or more states and they all say something pretty similar, “I did the return, the federal is okay but the state just doesn’t seem right.”  Then I ask, “Do you owe way more than you think you should?”  “Yes, how did you know?”  I do this for a living.  The quick answer is to check to see if you took a “credit for taxes paid to another state”, that’s usually where the problem is.

Normally, I would have put that at the end of the blog post, but it’s such a common problem that I figured it needed to go first.  Quick answer and you’re done.  If you need more information, I’ll start from the beginning.

Two states can usually be handled by most of the major tax software companies with no problem.  Remember the credit for taxes paid to another state and you should be good.  On the other hand, three or more states can send your software into a tizzy.  Even with my professional grade software, I still have to compute numbers by hand and manually input them into the program.  If you’re dealing with three or more states, spend the money on a professional.  It’s a good idea to ask, “Have you ever done a California return before?”  (Or Ohio, or North Carolina, or whatever.)  Experience helps.

Back to the two states:  There are two situations where you could have two state returns.  One would be you moved from one state to another, for example moving from Indianapolis to Chicago for a job.   The other would be where you live in one state but work in a different state, for example living in St. Louis, Missouri but working across the river in Alton, Illinois.  These two types of situations use different forms.

Moving:  When you move from one state to another, you’ll be filing your two state returns as a “part-year resident”.  You’ll be completing paperwork that says how long you lived in the state, what your earnings were for the state, etc.  You should only be taxed on the income that you earned while you lived and work in the state.  If you withheld properly, your taxes should come out normal, no big refunds, nor big balance dues.  Most of the time in a case like this, you won’t be filing a “credit for taxes paid to another state” because the “part year resident” return will handle you income allocations.  (Most of the time—there’s 50 states and they all have different rules, so in some cases you’ll still be doing the credit for taxes paid to another state.)

Living in one state and working in another:  this situation is a little different.  You will be a “resident” of the state you live in and a “non-resident” of the state you work in.  The state you work in is the state your company is going to withhold taxes from.  But the state you live in is going to tax your income too.  This is where it’s really important to remember the credit for taxes paid to another state, because if you miss taking that credit your tax bill could be enormous.  Sometimes, the tax bill is still pretty large even when you’ve done everything right.  For example, here in Missouri our state income tax rate is 6%.  Next door in Illinois it’s 3% (although it’s moving up to 5% this year.)  If you live in Missouri and work in Illinois, you’re going to get hit with a pretty harsh state tax bill unless you had Missouri taxes withheld or paid estimated taxes.

Here’s some other tips that will help you with your multi-state return:

  1. Always do the federal return first.  Don’t start the state returns until the federal is done and you feel that it’s correct.  If you have to go back and make changes to the federal, your state numbers will be off.
  2. Non-resident income:  that’s wages that you were paid in a state you didn’t live in.  It also includes self-employment performed in the state.
  3. Resident income:  the state you live in will tax everything, in addition to your wages, it will tax your pension, interest, investment income, everything.
  4. Moving expense deduction-always goes to the state that you moved to, not the state that you moved from.

This is a pretty quick and dirty summary of multistate tax returns.  If these tips don’t solve your problem, do call and get some help.  They’re not always easy to handle.

 

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Comments

691 Comments on Multi-State Tax Returns

  1. Darlene Williams on Thu, 14th Apr 2011 2:56 pm
  2. I worked in Texas in 2007 for a company based out of Florida. I lived in my Camper, since I worked in several locations. When I filed my Federal tax return I put my daughters address, in North Carolina, down for the return since I didn’t have a permanent address anywhere. I did not file any state return since Texas doesn’t have state taxes. North Carolina took my information from the IRS and now says that I owe taxes, Interest and Penalties for that year. I was just informed of this in March of 2011 and they are assessing interest and penalties. Do I indeed owe North Carolina taxes?

  3. Jan Roberg on Thu, 14th Apr 2011 3:27 pm
  4. You should not owe North Carolina taxes. What happened was that the federal government sends copies of the tax returns to the state that has the taxpayer’s address. In your case they sent it to North Carolina who in turn went–oooohhh, this guy lives here so he owes us money!
    But in your case, you don’t live there. You will need to send North Carolina a note explaining the situation. You did not live there now and did not live there in 2010. That should solve the problem. (Here in Missouri, there’s actually a little box you can check when you get one of those letters, it’s much easier.)
    This should be easy and you might even be able to handle it with a phone call. Good luck.

  5. haish phadke on Thu, 19th Jan 2012 3:55 am
  6. my case is a combination of the above two.

    I lived in Massachusetts for 7 months…had a small income as i was a student . In August I moved to Rhode Island….but worked in Connecticut . Taxes witheld in CT, and i voluntarily put aside $25 for RI every paycheck.

    How should i file?

  7. Admin Roberg on Fri, 20th Jan 2012 2:38 am
  8. Hi Haish,
    Okay so you need to file taxes for Rhode Island as a part-year resident. You will also need to file taxes for Connecticut as a non-resident.
    You might have to file taxes for Massachusetts as a part-year resident, but if you were a student and your income is really small, you might not need to file at all. Of course, if you had withholding and are eligible for a refund, you’ll want to file Massachusetts even if you don’t have to.
    If you’re doing your taxes from this website (link above) when you choose the state tax returns, you get as many states as you need for the one price, so even if your Massachusetts refund would be really small, it won’t cost you any extra to file.

  9. vegas on Thu, 2nd Feb 2012 2:41 pm
  10. I lived in North Carolina but was a stay at home mom. I moved back to Maryland in the summer and now have a job. Do I need to file for both states or just Maryland?

  11. Jan Roberg on Thu, 2nd Feb 2012 2:52 pm
  12. Hi Vegas,
    probably only need to file Maryland. I’m guessing that you’re not married so you don’t have a spouse’s income to worry about. If there’s no income then you won’t be filing for the state with no income.

  13. Cindy Woodward on Thu, 2nd Feb 2012 3:43 pm
  14. I’m just started travel nursing in 2011, I live in Georgia and I worked in Alabama for seven weeks. How do I file? Where do I put the credit to taxes paid?

  15. Admin Roberg on Thu, 2nd Feb 2012 6:04 pm
  16. Hey Cindy–
    You file as a resident of Georgia and a non-resident of Alabama. You put the credit of other taxes paid on your Georgia return. Many software programs will do it automatically for you, so check your return to see if it’s already there.

    Also–traveling medical staff often have expenses that can be deducted on a form 2106–if your company reimburses you for everything–then just forget it. But if you pay your own expenses–you’ll want to track all of your hotel, rent, mileage, meals (or take the per diem) etc. If you only did the travel nursing for 7 weeks, you won’t have enough of a deduction to make it worth you while, but if this will be a forever type of career, start tracking your expenses now. (I do a lot of those returns and it can make a significant difference in the amount of tax you pay.)

  17. Bryan Park on Sat, 4th Feb 2012 9:06 pm
  18. I lived in Connecticut while working in Massachusetts for part of the year, then moved to Massachusetts and continued to work at the same job. Which state return do I start first? Should I expect to receive a tax credit from CT or MA since both will be taxing my income?

  19. Admin Roberg on Sun, 5th Feb 2012 2:39 am
  20. Hi Bryan–
    Technically–you should file a “part-year resident” return for Connecticutt and a “part-year resident” return for Massachusetts.
    You should allocate the income that you earned while in Connecticutt to your Connecticut return and the Missouri portion of that state tax to the credit for your Connecticut return.
    That’s what you should do. That’s technically the correct way to go. And you’ll probably be pulling your hair out. Your tax software may just not be going with you on this one.

    So let me ask you a question–did you have any Connecticut withholding? Is there anything in your tax documents to connect you to Connecticut? How long did you live in Connecticut? How much money did you make there? You may just want to file a Mass resident only return. I know, it’s only fair to give Connecticut her fair share of the tax money, but if there’s nothing on your return to align you with Connecticutt, then filing only Massachusetts could be the easiest option.

    Start setting it up as a part year return–but if your software won’t handle it (it’s weird–some states don’t do this well so without actually doing your return, I don’t know how it will turn out) but if you can’t get the part year, consider just filing for Missouri.

    Start with Connecticut first.

  21. Cindy Robertson on Sun, 5th Feb 2012 6:12 pm
  22. I live in Illinois and work in Missorui. My employer hold out for Missouri state and local taxes. For 35 years I have always broke even on my state taxes for Illinois. This year was totally different. Knowing that there was a change going into effect as to the way this would work % wise, my husband and I both had more held out on our state taxes, which didn’t help at all, and for the first time owe Illinois, and not a small amount. Unless someone can tell me how to erridicate this issue, we will be paying the state of Illinois hugh amounts every year, or we will be moving to Missouri(NOT!). We had 3700.00 held out this year between the 2 of us, the state tax credit for missouri was 3300 and the tax for Illinois was 4100, do the math.

  23. Jan Roberg on Sun, 5th Feb 2012 6:33 pm
  24. Hey Cindy–
    That’s scary. I haven’t done a crossover return yet this year but I’m hearing horrible stuff. If you wouldn’t mind letting me take a look at it just to make sure. Even though Illinois raised their tax rates, and accounting for Missouri’s tax deductions, it still seems a little off.
    I normally charge $50 to do a look see, but I’ll do it for you for free just to get some decent information on my web site. It’s quite possible that it’s right, but I just want to make sure.
    You can email me directly a jroberg@robergtaxsolutions.com and I can explain how you can get me the information securely. Thanks.

    Now folks–I’m not going to be looking at everybody’s tax returns for free. I can’t afford to do that, but Cindy’s got a situation that many of my own clients are going to be dealing with so she’d be doing me a favor. Sorry.

  25. CIndy Rains on Mon, 6th Feb 2012 9:40 pm
  26. I have the same situation as CIndy Robertson. My spouse and I both work in Missouri and live in Il. We always broke even on Illinois but this year we are paying almost $1k. Will you post on here what you find out regarding this situation? Thanks!

  27. Admin Roberg on Tue, 7th Feb 2012 3:04 am
  28. Cindy,
    Will do.

  29. Jamie Amaral on Tue, 7th Feb 2012 2:50 pm
  30. My husband was in the Army and was a resident of Florida until October of 2011 when we got married and moved to Massachusetts with me. He was honorably discharged from the military and is now on unemployement in MA. Does he have to pay MA state taxes for the income he had earned in Florida? Or can he file part time residency? And can I still file Head of Household in MA since he only lived with me the last 3 months of the year?

  31. Jan Roberg on Tue, 7th Feb 2012 4:38 pm
  32. UPDATE ON THE LIVING IN ILLINOIS AND WORKING IN MISSOURI ISSUE:

    Oh my goodness, this is a huge difference. Last year the Illinois tax rate was 3% and the Missouri tax rate was 6%. If you lived in Illinois and worked in Missouri, pretty much your credit for Missouri tax paid covered all of your Illinois taxes.

    This year, the Illinois tax rate is 5%. You’d think your Missouri tax would still cover everything but it doesn’t. Here’s why–

    Let’s say you’re married and make $50,000 a year. In Illinois, you’d get to claim 2 exemptions at $2000 each and your taxable income would be $46,000. At 5% that makes the Illinois tax $2300. (Back in 2010, it would have been $1380.)

    In Missouri, that same $50,000 would have an exemption of $4,200, a standard deduction of 11,600, and a deduction for taxes paid to the IRS making your Missouri taxable income closer to $30,400. Now at 6%, you’d expect the Missouri tax to be $1824, but it’s actually even less than that because we’ve got a somewhat progressive tax system. In this particular example, the actual tax was closer to $1600.

    So you see the difference? In 2010–the Missouri tax would easily cover the Illinois tax, but now with the Illinois tax rate up to 5%–the Missouri tax doesn’t cover it.

    If you’re doing a an Illinois/Missouri crossover return, you can expect to be owing money to Illinois this year. Sorry about that.

    Special thanks to Cindy and Cindy for pointing out the problem.

  33. Admin Roberg on Thu, 9th Feb 2012 2:13 am
  34. Hi Jamie,
    You might need to file married filing separately this year. Play with it a little, but I’ve had similar problems with newlyweds with Massachusetts and different states before. Basically, your husband is a partyear resident of MA. He does have taxable income in Mass so he will have to file.
    You cannot be head of household, you’re married and you lived together so it’s illegal for you to claim head of household.
    Do you have children? If yes, then you probably don’t want to file separately–the tax credits for children will outweigh and problems with the Massachusetts health care tax issue.
    Many tax programs have a button where you can run the numbers as filing jointly and then you push a button and it tells you how your return looks if you file separately. Your federal will almost certainly be better filing jointly–but take a close look at what happens to your Massachusetts tax when you’re joint vs separate. You’ll want to take the track that gives you the best overall tax rate. That should set you in the right direction anyway.
    And thank your husband for his service to our country for me. :)

  35. B. MESSIER on Fri, 10th Feb 2012 4:34 am
  36. I lived in florida for almost 10 months in 2011 and then moved to mass. The company that I worked for in florida has its corporate headquarters in mass. Now when I moved to mass I got a different job in mass, I know I will be filing my tax form part year residence in both states but do I have to pay mass state taxes on the money that I earned in florida because the company is based in mass and I now live in mass. I hope not.

  37. Admin Roberg on Sun, 12th Feb 2012 12:16 am
  38. @B. Messier,
    You will be filing a part year return for Massachusetts and you should not be paying Massachusetts tax on the money you earned while you lived in Florida.

    In your situation–it’s very important that you file a Part Year resident return. Sometimes, computer software automatically files “credit for taxes paid to another state”. That works great for lots of returns, but it’s never a good idea for Florida.

    It doesn’t matter where your company is headquartered. If you work in a certain state–then your income tax should be based out of that state. Hope that helps.

  39. Cheryl C. on Sun, 12th Feb 2012 1:48 am
  40. Hi Jan, My daughter, used Illinois as her perm address on paper, lived half of last year in Connecticut while finishing school and half the year in New York when she started her first job out of college. So I have three states involved. I have claimed her as a dependent on both my state and federal taxes, for the last time. Now that she is out of school and has a job, she will use New York as her perm address starting in 2012. So where does she need to file for this last year? Connecticut earnings were less than 3000 and they held no taxes because it was a student job. New York held both state and local taxes. She earned no money from an Illinois employer.

  41. Admin Roberg on Sun, 12th Feb 2012 3:37 pm
  42. Hi Cheryl C.,
    First–do the federal. Then I’d file a “part-year” resident for New York. No Illinois. She may be required to file a Connecticut income tax return even is she had no withhodling so prepare that also as a “part-year” resident. No income in Illinois means that Ilinois is out of the picture for her tax return. Use her New York address when filing her 2011 taxes.
    NOTE: home of record and permanent address are issues that are more important when filing a military tax return. For regular citizens–it’s a different story. That’s why for your daughter–there will be no Illinois return for 2011.

  43. Ed on Tue, 14th Feb 2012 5:48 pm
  44. My wife and I lived in CA for the first half of 2011 then moved to TX. We also own a rental property in NC. We know we need to file a state return for CA, but do we also need to file a state return for NC just for the rental income? How do we ensure we’re not double taxed on that rental income in CA? Thanks!

  45. Vimal on Tue, 14th Feb 2012 9:49 pm
  46. Hi,

    I am an illiterate when it comes to tax-filing/tax-returns stuff. So please bear my questions if they are dumb.

    I lived in Connecticut from Jan 2011 to Jun 2011 and New Jersey from Jul 2011 to Dec 2011. Currently I am staying in New Jersey and my work office is also in New Jersey.

    Please advise as to how my taxes need to be filed? One of the Tax-returns advisor advised me that I will get tax returns for New Jersey state. So what happens to tax I paid for Connecticut? How will I get the money for that? He says, it will be exempted. So what does that mean? I will get full tax money back? Or what will I get back for Connecticut?

    Please advise.

    Thanks,

    Vimal

  47. Admin Roberg on Fri, 17th Feb 2012 1:46 am
  48. Hi Ed,
    First and foremost, California tax regulations are different from all of the other states. Make sure you read each line of the return carefully.
    California will tax your rental income from North Carolina–you were earning income while you lived in California so it’s taxable in California.
    But it’s also taxable in North Carolina. Let’s get started:

    First do your federal return. Make sure it’s 100% correct before you even look at the states.

    Next, do North Carolina–you’re a non-resident. You might not actually have any income because often rental real estate shows a loss. You may still be required to file even if your net income was very low, but even if you don’t have to file, you need to do the Carolina return to find out before you do California.

    Next do California as a part year resident return.

    There is no Texas state income tax. To make your computer software work, even though your Texas W2 doesn’t list anything in the state box, put TX in the state box when inputting the W2 income on the screen. This tells the program that that income is not from California.

    I’m guessing that you won’t be required to file North Carolina or at least won’t owe any tax there.

    With most states you can

  49. Admin Roberg on Fri, 17th Feb 2012 2:30 am
  50. Hey Vimal,
    Doing the multi-state thing is confusing. Don’t feel bad. Here’s what you do.
    First, prepare your federal return. Always do that first.
    Now, you’re going to file a part year return for Connecticut and a part year return for New Jersey. It doesn’t matter which order you do it in.

    I can’t tell you what you’ll get back unless I prepare the tax return.

  51. Ed on Fri, 17th Feb 2012 3:27 pm
  52. Thanks for the response! But it looks like the end of it is cut off. We did have positive income for the rental property, so NC wants to tax us on that. When I then did the CA return, there didn’t seem to be a way to get credit for taxes paid to another state (except for AZ, NV, Guam, and a couple of other “close-in” states, it seemed), at least not using TurboTax. It seems like I’ll have to file an amended return with the Schedule S, I guess.

  53. jeremy on Sat, 18th Feb 2012 12:54 pm
  54. My company is based in the East coast.I worked the first three months of the year in east coast. Then I was sent to west coast and worked there for five months. And I returned back to the head quarter(east coast) after working five months in west coast. I have been paying income tax for west coast while I was there. How do I file my state taxes? Thanks you

  55. Admin Roberg on Sun, 19th Feb 2012 1:59 pm
  56. Hi Ed,
    You’ve got one of the “problem” issues. A part year return with a “no-tax” state and income from someplace else. I get those a lot here–we’ve got Missouri and Illlinois, but someone will move here from Texas–it messes everything up.

    Basically, you can either claim “credit for tax paid to another state” or you can claim “part year” residency. Usually you just pick whichever gives you the best deal. Unless you made a lot of money on your rental–the part year resident is what will work best for you.

    So I’m thinking you’re stuck with double paying that tax. But just to be on the safe side, I’d call California and talk to one of their people at the help desk. It’s quite possible that I could me missing something. (I only do about 2 or 3 California returns a year–I’m not a California expert.) I know that different states handle the issue differently–we recently had a similar situation (different states though) and the state with the double tax issue gave us a solution that was very favorable to my client. But different states have different rules–so do talk to California.

  57. Admin Roberg on Sun, 19th Feb 2012 8:30 pm
  58. Hey Jeremy–
    It sounds like you are sent out on “temporary assignments”. This is how I’d do your tax return. What do you consider to be your home state? Sounds to me like out east is home–but that’s not always easy to determine. One state is going to be your tax home. That’s the state that you will claim you are a resident of.

    Next, any other states you work in will be “non-resident” states. This is one of my little specialties. When you are on temporary assignment–many of your living expenses while you are on your temporary assignment may be deductible. I do a lot of these returns for traveling health care providers and IT consultants. Those are two categories of jobs that tend to have lots of temporary assignments. I’ve also handled some traveling construction workers, although not so many in the past couple of years.

    So you’re not just looking at multiple states–you’re also looking at form 2106 expenses. If I’m right about you being on temporary assignments–filing your taxes correctly could save you lots of money. You should contact me directly for more information.

  59. Katja on Tue, 21st Feb 2012 4:02 am
  60. I moved from VA to OR in August 2011 and have income from both states, so I guess I’ll be filing part-year resident returns in both states. My question is about rental income on a property I still own in VA. Do I split the income (loss actually) between the two states or keep it all on the VA return. If the latter, can I do that on a part-year resident return or do I need a non-resident return to cover the rental from Aug to Dec? Thanks.

  61. Admin Roberg on Thu, 23rd Feb 2012 3:17 am
  62. Hey Katja,
    You’ve got one of the more difficult tax problems–two part year returns plus non-resident income in one of the states. And it really doesn’t work because you’re generally doing one or the other. My recommendation is preparing the part year returns and just putting all of the VA rental income on the VA return.
    Next year, when you have VA rental income but you’ll be living in Oregon–you’ll prepare a non-resident VA return and for Oregon you file a “credit for taxes paid to another state.”

  63. Amit on Thu, 23rd Feb 2012 9:54 pm
  64. Hi ,
    I moved to Maryland in Jan 2010 in a consultancy for training. I was not paid during my internship during training. I got a job in NY in July 2010. I did not earn a single penny in Maryland . Total income for 2010 was from the job in NY. Do I owe any money to Maryland state ? I filed my returns via turbotax last year and they didn’t tell me that I owe $951 to Maryland state. I came to know this when I checked for my tax documents recently. Can I amend the last year’s return and get rid of this MD state tax?

  65. Conrade on Thu, 23rd Feb 2012 10:26 pm
  66. I moved to Montana from Virginia in June of 2011. I will be filing taxes in both states here soon and was wondering if there is any information you have that I should keep in mind when doing so. I will be moving back to Virginia in March for graduate school, and I wasn’t sure if there were any hiccups that might occur due to my lack of experience filing for two different states. The forms are the 1040ez, but I haven’t done this before and don’t want to find out later that I should have done something I simply had no clue to do. Any advice would be great. Thank you.

  67. Dan on Fri, 24th Feb 2012 11:07 pm
  68. I will be moving to Chicago, Illinois and working for (and paid by) a company based in Massachusetts. Which state’s income taxes will be deducted from my pay check? One, both, or neither?

    Thanks for your help.

  69. Igor on Sat, 25th Feb 2012 7:49 pm
  70. Roberg,

    First of all thanks for having such website and helping out individuals through it.

    I have read through your blog post and all the comments up until now, but I’m still a little uncertain on how to proceed: I lived and worked in IL for 7 months. For the remaining 5 months, I lived in CT and worked in MA. Taxes were held in IL and MA.

    (1) Am I correct that I have to file IL and CT taxes as part-time resident in each state and file MA taxes as a non-resident? From one of your comments it sounded like maybe I didn’t need to file CT taxes as I had no income there.

    (2) I’m not sure if the “credit for tax paid to another state” applies here. I will look into if it does, but if it does, in which state would the credit be applied?

    Igor

  71. Admin Roberg on Sat, 25th Feb 2012 10:34 pm
  72. Hi Amit,
    I’m pretty sure that you can amend your Maryland return because you shouldn’t owe them any tax. (You didn’t have a period where you lived in New York and worked in Maryland did you? That seems rather difficult to pull off, but I guess it’s possible–in that case I could see you owing Maryland, but no other case.)

    By the way–did you claim your expenses that you had in Maryland for the training as employee business expense? It might not have helped your return, but I figure I’d bring it up since you’re amending anyway.

  73. Admin Roberg on Sat, 25th Feb 2012 10:41 pm
  74. Hi Conrade,
    Here’s my basic advice.
    1. Do your federal first. Don’t touch your states until your federal is done.

    Now here’s the situation–you can file a part- year return for Virginia and a part year return for Montana.

    Or– you can file a resident return for Virginia with a credit for taxes paid to Montana. (Since you’re moving back anyway.)

    It most likely will not make a difference in your refund or balance due amounts. But if there is a difference–do whichever way gives you the most money.

    Hope that helps.

  75. Admin Roberg on Sat, 25th Feb 2012 11:55 pm
  76. Hi Dan,
    Once you move to Chicago, your withholding will be for Illinois and you will be filing an Illinois state income tax return. Welcome to the mid-west.

  77. Admin Roberg on Sun, 26th Feb 2012 3:59 am
  78. Hi Igor–
    You’ve got an unusual situation. I’m thinking that in your case–I would do the following:
    1. file a part year return for Illinois.
    2. file a non-resident return for Massachuestts
    3. file a resident return for Connecticutt with a credit to taxes paid to other states.

    Since you live in Connecticutt, your tax return will have a Connecticutt address and you’ll be expected to file Connecticutt paperwork. I think filing the way I laid it out will be to your best advantage.

  79. Jeremy Landry on Mon, 27th Feb 2012 10:46 pm
  80. We are using Turbo Tax to file our taxes this year. My husband works in one state and we reside in another. How on Turbo Tax do we get the Credit for Taxes Paid in another state?

  81. Admin Roberg on Tue, 28th Feb 2012 3:45 am
  82. Hey Jeremy,
    Call your Turbo Tax hotline and they’ll talk you through it. Seriously, they have experts who work with their software everyday to help you.

  83. Emily on Wed, 29th Feb 2012 4:49 pm
  84. I hope you can answer my question and I really appreciate your wonderful advice on this website. I work for an employer who is a construction compan base of operations in missouri, the employees report to work in missouri everyday and live in missouri, but we do have a few jobs in kansas and oklahoma since we are at the border. Do we have to withhold in three states? SOmetimes our service techs are working a few hours in oklahoma and a few hours in missouri on the same day. Our software is setup to handle multi state issue, I just want to make sure to do the right thing.

  85. Emily on Wed, 29th Feb 2012 5:15 pm
  86. I am sorry, one more addition- The construction guys report to work here in missouri to get their trucks and orders, and they end their day in missouri to turn in their trucks and orders. About 2 hours a day in missouri and 6 hours in the other state.

  87. Becky on Wed, 29th Feb 2012 8:12 pm
  88. This is very helpful! I live in MO and have worked in IL for the past 18 months.

    My employer seems willing to withhold taxes for MO or IL, based on my preference, and I am not sure which is best. It sounds like I need to file in both states either way. I will owe taxes on what I earn in IL to IL. Then I will file in MO where I will be taxed on all my income (with my husband’s wages, interest, etc) and I will claim a credit for what was paid to IL.

    Does it matter in which state my withholding takes place? Do you have a recommendation on which would make it easier for me to file?

    Thanks!!

  89. Admin Roberg on Thu, 1st Mar 2012 2:13 am
  90. Hi Emily,
    Forgive me but I’m going to do a classic cop out and have you contact the different states as to how they want you do handle the withholding. That’s out of my league. Sorry.

  91. Admin Roberg on Thu, 1st Mar 2012 2:27 am
  92. Hi Becky,
    Thanks for having a question I can answer! Tonight’s been a lot of “Gee, I don’t know.” But this one I do have an answer for you. Because you work in Illinois, withhold for Illinois. Then you’ll file a credit for you Illinois taxes to Missouri, but it will work out okay.

  93. Cris on Sun, 4th Mar 2012 4:15 am
  94. We live in ID. My husband worked in Alaska for 2 months, which does not have any state income tax. So am I right that we would have to pay ID state tax on the income he made in Alaska?

  95. Admin Roberg on Sun, 4th Mar 2012 6:46 pm
  96. Hi Cris,
    Yes, you’re right about paying Idaho state tax on the income your husband earned in Alsaska.
    Now–just in case it helps you–that Alaska job is considered to be temporary employment or a temporary location anyway. You may be able to write off many of the expenses he had that were part of being employed at a different location temporarily. You would use a form 2106 and would deduct employee business exepenses. If he went to Alaska to work and his employer didn’t reimburse him for the cost of traveling and living there–there could be some deductions for you. It’s worth checking into.

  97. Romeo on Mon, 5th Mar 2012 4:33 am
  98. I’m a chicago resident since 2008 , my employer files for bankruptcy on Nov 2011.. on Jan 5, 2012 until Feb 5 i worked in San Fran, CA as a consultant (w2 basis) then i found another job in Chesterfiled, MO where i moved/joined on Feb 7 until now.. means I paid taxes to CA and im now to MO.. at the end of 2012 when i file for my return .. would it be very complex to fill the forms? i read somewhere on the net that i may end up paying taxes to Illinois too? is that true ?

    if so, why would Il tax my income that i didnt make in Illinois? I’m getting paid hourly( not FTE yet) and on my paystub i see taxes withhold to MO. but i’m not sure if i’ll owe Il at the end of the year of what?

    from what i read on both states’ websites, seems there is some sort of credit between states but im still not sure if the picture is fully clarified .. or if i need to correct anything with my employer( they know im not a resident of MO).. would you please advise me on my situation..

    Thanks :)

  99. Admin Roberg on Tue, 6th Mar 2012 2:35 am
  100. Hey Romeo,
    Welcome to Missouri. Here’s the deal–you lived and worked in Illinois for all of 2011. You fill an Illinois tax return only. Now your tax return is going to have a Chesterfield, Missouri address on it–so later you’ll get a nasty little letter from Missouri asking you why you didn’t file a Missouri return. You will write back–on that very same letter they sent you, that you lived in Illinois for the entire tax year of 2011. End of story there.

    For 2012, you probably had California taxes withheld, and of course you’ll be dealing with Missouri. You’ll be a Missouri resident and file a California non-resident. Not that hard. Since California was a temporary situation–you may have some “employee business expenses” that could be worth reporting–it depends upon your situation.

    Or am I misunderstanding and you’re still a Chicago resident? If so, you would file an Illinois return, and have both California and Missouri as non-resident returns. You would claim credits for taxes paid to other states (this gets complicated if you have three states involved so that might be worth hiring someone–Hey–I’m good at that stuff–just sayin’.)

    But f0r 2011–you’re just an Illinois resident filing an Illinois return.

  101. Stacey K. on Tue, 6th Mar 2012 4:58 am
  102. Thanks for all your helpful information here. I lived in two different states last year (9 months in NJ and then moved back “home” to IL for remaining 3 months). I have prepared part-year resident state returns for both states. Unfortunately, I am an expert at filing multi-state returns. My question, however, is how to allocate the following deductions – student loan interest (do I allocate it according to time in each state?) and IRA deduction (I’m thinking IL since I will write the check now in April). I allocated my moving expenses to IL based on your advice above. Thanks in advance for your advice. Best regards.

  103. Eric Edscorn on Tue, 6th Mar 2012 3:48 pm
  104. Ok, here’s a head-scratcher. I am a yacht captain, and although the yacht is registered in the Cayman Islands, the payroll company is based out of FL. We travel to several states and also to other countries. I also have a sailboat that my girlfriend and I stay on when we aren’t working. We used to use the marina in FL where we keep the sailboat as our address, and had to pay no State Income Tax. Last year however, we bought a house in NC, and we will spend probably 4 months a year there. Do we have to pay NC state income tax if we aren’t employed there and spend less than half of our time there?

  105. Maria on Tue, 6th Mar 2012 6:02 pm
  106. I was a student in South Carolina, and got a stipend for three months. They did not take any taxes from my stipend. After I graduated, I did not really lived anywhere from April to July but since I was looking for work, my permanent address was in Virginia with my sister though I was traveling the whole time. Never actually stayed in Virginia. I moved to Massachusetts in July, and stayed there till I found a job in September. Any recommendations on how to file my taxes and allocate residency? Thank you! I did not even consider that I might have to think about Virginia since I didn’t live there ever…am I correct? Thank you for any help you can provide!

  107. Admin Roberg on Thu, 8th Mar 2012 2:20 am
  108. Hi Stacey,
    So understand about allocating things between the states–which is the correct way to allocate your student loan interest. And I agree with you–allocate your IRA deduction to Illinois since you made the payment now.

  109. Admin Roberg on Thu, 8th Mar 2012 3:05 am
  110. Hi Captain Eric,
    (Had to say that, just had to.) Well I actually was listening to Jimmy Buffet on the radio today so I’m totally in the mood to answer your question.
    I say that your home port is in Florida–that’s where you spend the most time when you’re ashore. Although you own property in North Carolina–I’m thinking that’s your vacation home, not your main home. (If that changes, and you start spending more time in North Carolina–you’ll probably have to file a tax return there as well, but until then it looks to me like Florida is your main home.)
    So for now–I’d file as a Florida resident. If in the future that changes–then you’ll file as North Carolina. Also, if you wind up renting out your North Carolina vacation home while your at sea, then you would file a North Carolina non-resident return to report that rental income.
    Hope that settles things a bit for you.

  111. Admin Roberg on Thu, 8th Mar 2012 3:14 am
  112. Hi Maria,
    It sounds to me like you were just using Virginia as an address. I would file a part year return for South Carolina and for Massachusetts. I’d just leave Virginia out of the mix–I agree, you didn’t really live there.
    Now for the South Carolina stipend–did you pay tuition that year? If the stipend was used towards your tuition–then it’s not taxable. In which case you wouldn’t even file a South Carolina return. If you had a full scholarship plus recieved the stipend–then it is taxable. (Goes on line 7, be sure to deduct all of your business exenses from the amount you received–I do a lot of these for medical students here at Wash U–you don’t want to pay more tax than you actually owe.)

  113. AJ on Fri, 9th Mar 2012 2:41 am
  114. My wife spent all of 2011 living and working in Massachusetts. I finished my job in Texas (no state tax) in April 2011 and moved to Massachusetts. Can we file a joint state return for MA and claim full residency statuses for the both of us although I moved to MA in April of 2011? I read something about the 183 day rule. I appreciate your help.

    Thanks!

  115. Admin Roberg on Sat, 10th Mar 2012 3:34 am
  116. Hey AJ,
    You certainly would be allowed to claim full residency status in Massachusetts–but I’m not sure that you’d want to. For one thing–if you claim to be a full year resident of Massachusetts, then all of your Texas income would be taxable in Massachusetts. Also–and since I’m not doing your taxes, I can’t say for sure–but then you’d also have at least 4 months of not paying the Massachusetts health insurance which could end up affecting your tax refund/balance due.
    You’ll want to play with it. In Massachusetts, you can file jointly on the federal and separately for the state. That’s probably what you’ll want to do for the best tax benefit. (Actually, I think you’ll have to file separately if you do the part year and your wife does the full year. (Yes, here’s the link: http://www.mass.gov/dor/individuals/filing-and-payment-information/guide-to-personal-income-tax/filing-status.html#MarriedJoint)
    If you’re using tax software–prepare your federal first as married filing jointly. Save it, and then set up for married filing separately. It will be like filing three separate tax returns. (That’s because it is.) So it depends upon how much money you made in Texas to see if this will be worth your while or not.

  117. Bethany on Thu, 15th Mar 2012 1:30 pm
  118. My husband and I were married in May 2011 but the issue is my husband worked and lived in WV before we got married. I also worked in WV til march 2011 but I lived in va. As of the wedding my husband and I live and work in va. I’m trying to file my taxes online for the first time and I’m confused cuz it keeps saying we have to file part year residence but I’ve lived in va all my life. What can I do ?

  119. Admin Roberg on Fri, 16th Mar 2012 1:24 am
  120. Hey Bethany,
    It’s confusing because you’re not a part year resident–but some states use the phrase “part year” for a couple of things. Besides, even though you were there the whole time, your husband was only part year.
    Go to the part year form and follow the directions. In your case, it will probably be best to get a credit for taxes paid to another state, but you might need to play with the returns a little.
    Most people do better filing their tax returns as married filing jointly. If you don’t have children, filing as married filing separately might not be harmful to your refund–but it would make your states easier. You might want to check out that option just to see if you save money. (Usually you don’t, but sometimes you do.)
    But don’t let the “part year” phrase fool you, it’s okay for your situation.

  121. Bethany on Fri, 16th Mar 2012 11:24 am
  122. Ok thanks we only get $6 back because of it. I guess I’ll
    Just file both states part year unless your allowed to do WV part year and va full year. I’m so glad we won’t have this mess next year. My husband only lived with his parents in WV do it’s not like he owned property do I wish we could just file nonresidence.

  123. Bethany on Fri, 16th Mar 2012 5:41 pm
  124. Another thing when I filed it threw turbo tax and filed part year for WV it will not let me use married and filing jointly it makes me check married filing separate. How can that be when I’m filing married jointly ?
    I also saw where you could by the turbo software and it would let you file federal jointly and state seperate is that true?

    Thanks for your time

  125. Admin Roberg on Sun, 18th Mar 2012 12:53 pm
  126. Hi Bethany,
    Some states allow you to do married filing separately even though you file jointly on the federal. Sometimes, it’s only for special situations (like part year states.)
    Now if it’s only costing you $6 if you file as Virginia residents and WV non-residents, then I’d just do that because it is easier. (But if you’re losing out on a refund–that’s a different story. Tough it out and do the part-year returns.)

  127. Kathy on Sun, 18th Mar 2012 5:32 pm
  128. Here’s our situation. My husband took a position in North Carolina for the same company he worked for in New York. he is currently living in our RV at a park (temporary living situation). I am living in New York and have New York income. I will be here until our home sells. we do not plan on buying a home in North Carolina until after the home in New York State sells.

    Should my husband change his address to North Carolina for withholding on his paycheck? 9I believe he has to). What happens when we file our 2012 taxes? If our home hasn’t sold then I will be a full year resident and he will be a part year resident. I don’t want to end up with a big New York State tax bill because his company is only withholding North Carolina taxes from his paycheck and not new York State taxes. Or can his company withhold both and should they?

  129. Admin Roberg on Sun, 18th Mar 2012 9:06 pm
  130. Hi Kathy,
    I would have your husband change his withholding to North Carolina because he will have to pay North Carolina income tax. So depending upon the move, you’ll be a part year resident of both states, your husband will be a resident of North Carolina.
    I would also have your husband keep track of all of his expenses in North Carolina–just in case his company decides to move him back to New York. (There are deductions for temporary work situations. Although it sounds like your move will be permanent–I’d keep track anyway, just to cover your bases.)
    If your husband lives in North Carolina–he won’t be paying New York taxes–just you will. So it should all balance out.

  131. Bethany on Mon, 19th Mar 2012 1:29 am
  132. When I first filled out our taxes I forgot to put that my husband lived somewhere else and I filed how you just told me to and we would get back 227 instead of 6 but my question is will the state come back or after us since he did live there for 6 months? I dont want to have to give money back lol I’m sorry I have a lot of questions I just don’t want to file wrong and it come back on us.

  133. Romeo on Tue, 20th Mar 2012 4:40 am
  134. Thanks for your quick turnarround..

    I’ll for sure need your expertise on my taxes for the 2012.. what is the best way to contact you .. as you are correct, I’m still a chicago resident and I fly back and forth to MO over the weekend.. do you think i can claim both CA and MO business/personal expensees.. considering the fact that i’ve a house in chicago and my family is living there?

    I’ve never ran into complex Tax situation like this before.. I’m keeping all receipts/bills/hotel invoices/etc .. do you think i need to bundle them up or they are worthless?

    send me your business info please.

    Thanks

  135. Admin Roberg on Thu, 22nd Mar 2012 12:32 am
  136. Hey Bethany,
    I think you’ll be fine if you file both you and your husband as residents and pay non-resident tax to West Virginia. I probably should have just had you do that from the very beginning.

  137. Admin Roberg on Thu, 22nd Mar 2012 1:06 am
  138. Hey Romeo–
    Save all of the receipts. There’s a whole bunch of things that you can claim when you’re on “temporary assignment” you don’t want to miss any of it. You can contact me directly at jroberg@robergtaxsolutions.com I’d be thrilled to work with you.

  139. Tracy Liu on Thu, 22nd Mar 2012 5:00 pm
  140. both of my husband and I live in MO, I work in MO,my husband has a home office in MO (80% time he works in MO, about 20% he travels to IL, TN, IN KY), his employer is located in IL, so, on his paycheck he has IL tax withheld. so, could you please advise does he need to pay tax to IL? can we get all tax withheld from IL returned? please keep in mind, his most work place is MO. thanks in advance.

  141. Admin Roberg on Fri, 23rd Mar 2012 2:20 am
  142. Hi Tracy,
    You’ve go so much going on here I’m not sure where to start. I take that back–I know where to start–but then it gets tricky.

    First–your home state is Missouri so you file a Missouri resident return. (Easy part out of the way.)

    Second, you will file a non-resident return for Illinois–because you have to–no way around it. The employer is withholding for Illinois.

    Now–about Tennesee, Indiana, and Kentucky–is the employer withholding for them? Or does he just travel there for business trips? (For example–different job long ago, I used to live in Massachusetts, but I flew to Texas and Okalahoma quite often for business. Even though I worked in Texas and Oklahoma, my paycheck always withheld Massachusetts taxes. I never had to do an Oklahoma return. (Texas doesn’t have state income tax, not really a good example.)

    Now if the employer was withholding for those states, then you’d be filing tax returns for those states. So it’s sort of how the employer sees it–unless he’s really setting up residences in those places, I wouldn’t worry about filing returns there.

    But–one thing to look at. Does the employer reimburse him for all of his travel? If not–he should be doing a form 2106 Employee Business Expense form–it might make for a nice deduction for him.

    Bottom line–the employer has determined that your husband works in Illinois, that’s why Illinois tax is being withheld. So you will pay Illinois tax for that income, and then you will receive a credit on your Missouri return for the tax that you paid to Illinois. The tax is what’s on the Illinois tax return–not what was actually withheld.

    Hope that clears things up a little.

  143. Leo on Fri, 23rd Mar 2012 5:30 am
  144. Hi there. Both my wife and I are Illinois resident. My wife is self employed. Last year (2011) she sometimes had to travel to Missouri to work on site for a client. Other times she just worked from our home in Illinois for the same client (about 50% worked from home at IL, 50% travelled and worked in MO). We understand we have to file Missouri state tax as nonresident. However, we are not sure how to allocate her non-employee compensation stated in her 1099 MISC form sent by her MO client. Do we have to allocate 100% compensation from her MO client in Illinois Scheduled CR Business Income as Non-Illinois Portion? Or should we divide her income from MO to 50% IL, and 50% MO because she was physically in MO 50% of the time? Thanks in advance.

  145. Michelle on Sun, 25th Mar 2012 2:26 am
  146. So my student who is an Illinois resident earned $47 bucks in IL. While at school in North Carolina he earned $6900. Even after taking the credit for the taxes he has paid to North Carolina – he has to pay IL an additional $110. Can this be right – I keep going over and over the IL1040 and Schedule CR and there isn’t a place to “deduct” his NC income from his IL base pay – am I missing something? Just seems so unfair that both states get to collect . . .

  147. Admin Roberg on Mon, 26th Mar 2012 1:45 am
  148. Hi Leo,
    That’s a good question. Personally, I would allocate the 50% of the time to Missouri and 50% to Illinois. But you would be perfectly allowed to allocate the entire 1099 income to Missouri if it worked in your favor.

  149. Admin Roberg on Mon, 26th Mar 2012 2:39 am
  150. Hi Michelle,
    That could be right, the way the taxes work. But here’s what I’d do–your student lived in North Carolina for over half of the year. He only made $47 in Illinois so he wouldn’t even have to file an Illinois return. I’d file the North Carolina return as a resident, using his North Carolina address. His Illinois income would be non-resident income to North Carolina, but he wouldn’t need an Illinois return. That’s probably the easiest solution.

  151. Graham on Mon, 26th Mar 2012 11:27 am
  152. I am currently a grad student in North Carolina and full time resident (have been for years). I worked in NYC this summer and made all of my money in New York, but only lived their 10 weeks. Do I need to claim that income as New York or North Carolina? Will I owe anything to North Carolina? Thanks for your help.

  153. Brenda on Mon, 26th Mar 2012 8:25 pm
  154. I have a question about state taxes. I lived in Minnesota and was transfered for my job to Massachusetts. I moved to Rhode Island because I had a place to live with friends. I do a commute to my job in Massachusetts. For my moving expenses which state do I deduct the moving expenses from? Would it be Massachusetts since its the state my job is or the state I actually moved to Rhode Island.

    Thanks,
    Brenda

  155. Admin Roberg on Tue, 27th Mar 2012 12:08 am
  156. Technically, you should file as a North Carolina resident and a New York non-resident. So depending upon the credit for taxes paid to another state–you may owe North Carolina taxes, but I doubt it.

  157. Admin Roberg on Tue, 27th Mar 2012 12:30 am
  158. Hi Brenda,
    I would record your moving expenses to Rhode Island, because that’s where you actually live.

  159. Sandeep on Tue, 27th Mar 2012 5:54 pm
  160. I am a Non Resident Alien for tax purposes for Federal Tax Returns, I worked in two states CA for about 9 months and IL for 2 months.

    What is my tax residency status for both these states. Do I have to file just the tax returns for Non Residents for both states? and Do I have to file the Credit for Taxes paid to to other states for any one state ?

    I earned $3728 in IL, I read that there is no need to file taxes if the total income is less than $3700. But there is a huge tax (190$ for my income just above 3700$). This is due to a large amount of income I earned in CA, my exemption allowance is very low for IL state, so I have to pay a tax of about $190. The amount of tax payable to IL state is depending on my CA earnings. If my CA earnings were very low, then the exemption would be high (close to 2000$) with which I will have to pay very less tax. Is this correct? or do I need to file the Credit for taxes paid in other states as well? This is a little bit confusing to me.

  161. Admin Roberg on Thu, 29th Mar 2012 2:01 am
  162. Hi Sandeep,
    We talked on the phone and yes, the amount you owe to Illinois sounds right. Make sure you use that amount as a credit for taxes paid to other states when you file your California return.

  163. KC on Thu, 29th Mar 2012 8:29 pm
  164. Hi,

    First off thank you so much for this great information. I live (now) in California and will be taking a job in Texas (permanately). At least initially my husband and daughter will remain in California and I will rent an apartment in Texas. I will return to California occasionally and they will visit me in Texas. Of course this will all start mid-year. I will reregister my car in Texas. Will we be looking at married filing seperately (I will have no partial year income in California) or will I have to file my Texas income on California income taxes? Can we file joint federal and MFS for state? I will be making roughly a third of what my husband makes. Oh we own our home in California and it will be where I sleep when visiting. Do you do taxes for people not in your state because I think we will need help?

  165. Angelo Marrero on Fri, 30th Mar 2012 2:27 am
  166. I was transferred to Chicago from Los Angeles in 2006 and all my income is derived in Illinois. Recently, my employer started withholding Calfornia taxes. They say its because company records show I have a California address and they withhold for both states. I have an apartment where I live in Chicago. I have an Illinois driver’s license and I vote in Illinois. I didn’t change my California address because my wife and children live there and dont want to change their health insurance carrier. My employer suggested I change my address to Chicago but I would rather not. So my question is, is my employer correct in withholding California taxes, though none of my income is derived in Illinois? Thanks in advance for your attention.

  167. Admin Roberg on Sat, 31st Mar 2012 11:17 pm
  168. Hi KC,
    Yes I do tax returns for people in all sorts of places! Here’s your situation–California taxes the income of a California resident’s spouse even if the spouse lives out of state. You’ve got a weird issue–you’re going to be better off filing jointly federal because you have a child–but the California issue might change that for you.
    As much as I want to do your taxes–I’m going to recommend that you do your return in California with a licensed California preparer. I’ve worked on a couple of audits for people with California/other state returns and California always wins. (By the way–I just want to point out that I didn’t prepare the California returns that I lost the audits on–just represented the taxpayer.)
    The thing is–with any other state, they would not count your income (the spouse living out of state) on the state return–but California does. (I did happen to learn a thing or two losing the audit.) So that’s why I recommend using a California preparer–1. California preparers won’t make that mistake, and 2. You’ll be moving to Texas–those preparers don’t do many state returns so state taxes in general won’t be their forte.
    California will allow you to file a joint federal return and file separately for California if you are a California non resident for the entire year, and if you had no California source income. I wouldn’t count you spending the night at your house when you’re visiting as living in California–but you’re technically not moving until mid-year. (Here in Missouri–there’s a tax situation where if you slept in the house for even one night you’d lose the deduction–but I think California would allow some overnight stays.)
    But that’s why you’d want a California preparer–it’s those dumb rules like that (that not sleeping in the house for even one night saved one of my clients $600!)
    Good luck, have a safe move and hopefully the time you spend apart will not be too long.

  169. Admin Roberg on Sat, 31st Mar 2012 11:56 pm
  170. Hi Angelo,
    It must be California day on the blog. Your employer is doing the right thing by withholding California taxes. You maintain a California address and your family still lives there. So, yes, you should be paying California taxes.
    Because you work in Illinois and pay taxes there too, you should get a credit from California for the taxes you pay to Illinois.

  171. Sid on Sun, 1st Apr 2012 12:11 pm
  172. We live in NJ. Spouse works in NJ but I work in MA – since I rent an apt there and spend more than 180 days, I file MA as resident. We used to file NJ married filing separately and I would take credit for MA taxes. But this year, it costs me less to file jointly in NJ and file separately (just for myself) in MA. Is that valid?

  173. jeevan kodali on Mon, 2nd Apr 2012 12:54 am
  174. Hi

    My wife is a full time non resident of CA and resident of IL. Her company gave her two W2s, one for CA and one for IL. Her IL W2 has her full wages for the year where as CA W2 only shows CA part. When I tried to submit IL taxes online, it gave an error of 0615 saying that sum of non IL Part + IL Part = total wages but since my IL wages is total, IL wages (total)+CA wages > total wages. What should I do now, should I ask the employer to send updated W2s or should I just do paper filing?

  175. Pratibha on Mon, 2nd Apr 2012 3:54 pm
  176. I am US permanent resident, but have lived in Dublin, Ireland during the past year and a half. My husband and I used to file taxes in N.Y. before our move to Europe & we continued to file our tax returns in N.Y. (using my in-laws address) as our positions here were meant for a short time only. But after returning to the U.S. last April, my husband moved to Maryland for work. I was wondering if we should file tax returns for NY at all? Neither of us had any income in NY during the last year.

  177. Ana Cheng on Tue, 3rd Apr 2012 10:52 pm
  178. Hi,
    I moved to IL from CA in August of 2010 and have been living and working in IL ever since; however, I just realized that the company never updated my home address, so I’ve been paying CA income taxes for all of 2011. I now have 2 W2s, one for IL and one for CA. It seems like I’ve paid state income tax in both states … what should I do?

  179. Milind Patel on Wed, 4th Apr 2012 2:15 pm
  180. Hi! I live in Illinois and work in Ohio. I paid Ohio income tax as well as city tax in Ohio (highland Heights) where I work. I paid tax in Ill as I am resident of Ill. Can I get reimbursment for city tax I paid while filing Ill tax return?

    Thank you in advance for your time.

    Regards,

    Milind Patel

  181. Logan on Wed, 4th Apr 2012 6:38 pm
  182. I worked in Missouri all of 2011. The last week of February I moved from Missouri to Kansas. I lived in kansas until the middle of November and then moved back to Missouri. how will i file this?

    Thanks!

  183. Admin Roberg on Wed, 4th Apr 2012 9:41 pm
  184. Hi Sid,
    Yes it’s okay to file married filing jointly for your federal and married filed separately for MA.

  185. Admin Roberg on Wed, 4th Apr 2012 9:57 pm
  186. Hi Jeevan Kodali,
    Call the E-File help desk at the IRS 866-255-0654.

  187. Rani on Thu, 5th Apr 2012 1:33 am
  188. I am a student living in Georgia where I do earn income from the school.

    Over the summer, for 3 months, I moved to and worked in Florida where they have no state income taxes so nothing was withheld. I had registered my local (Florida) address with my employer to gain the benefits of living in Florida. However, the W-2 states my GA address though. Do I owe taxes to the state of GA since I lived in Florida during my employment? Should I contact my employer about the address as all my paychecks had the FL address on them.

  189. Admin Roberg on Thu, 5th Apr 2012 2:06 am
  190. Hi Pratibha,
    I would file for Maryland instead of New York and use the Maryland address on the tax return.

  191. Admin Roberg on Thu, 5th Apr 2012 2:27 am
  192. Hi Ana,
    You will file part year resident returns for both California and Illinois. You will attribute the income you earned in California to the California return — and the income you earned in Illinois to the Illinois return. It should work something like this: Total federal income: $10,000
    California income: $5,000 Illinois income: $,5000 that’s a workable situation.

    If it looks more like total federal income: $10,000
    California income $10,000 and Illinois income $5,000–that’s a tougher fix. I’d try filing as a California resident with a credit for taxes paid to Illinois as a non-resident. That might still be a perfect wash for you (not sure.) If it’s really bad, you might want to see if you can get you employer to reallocate your California income on your W2. The withholding would be the same, but the wages earned in California would be reduced. Good luck.

  193. Admin Roberg on Thu, 5th Apr 2012 2:37 am
  194. Hi Milind,
    you can’t claim your Ohio city tax on your Illinois return, but you can claim it on the Schedule A of your federal return.

  195. Admin Roberg on Thu, 5th Apr 2012 2:44 am
  196. Hey Logan,
    I’m kind of lazy so I would defer to your W2. I’m guessing that your W2 has Missouri withholding and that your current address is in Missouri. If that’s the case, file as a Missouri resident all the way.

    You may be thinking–but what about Kansas getting their fair share? Kansas will be fine without you–you’d only mess up their system filing there with no address or withholding.

  197. Admin Roberg on Thu, 5th Apr 2012 2:48 am
  198. Hi Rani,
    It’s perfectly normal for a person to move and for their employer to send a W2 to a new address–the address on your W2 is not really a problem for you. It’s the withholding that determines what states have to be filed. The withholding, and the state that you live in.
    It sounds to me like you are a permanet resident of Florida, and a non-resident of Georgia (because you’re just going to school there.) So you would file a non-resident return for Georgia–for your Georgia income. Use your permanent Florida residence address on your tax return. It should all work out.

  199. Ning on Thu, 5th Apr 2012 6:41 am
  200. My wife lived and worked in NJ for the whole year 2011. I moved from NJ to CA for a new job in late Oct. As my wife’s income is much lower than mine, we want to file jointly for Fed as we usually do for the past years. Looks like we need to file jointly for NJ return. I couldn’t figure out what our file status is for NJ return. Is it whole year resident or part year resident part year nonresident?

    If it is whole year resident should I report my CA income to NJ? I already paid my CA income to CA as a CA resident. If it is part year resident, then I don’t need to report my CA income to NJ. But when I fill in the date I moved out of NJ on the return, it looks like my wife and I moved together and her income from late Oct to the end of 2011 becomes non-resident income which doesn’t sound right. I am really confused.

    Thanks!

  201. Rani on Thu, 5th Apr 2012 1:14 pm
  202. In response to your response…

    I actually am a resident of Georgia. I just did my internship in Florida.

    Does that change anything?

  203. Beth on Thu, 5th Apr 2012 2:21 pm
  204. Hi,
    In 2011 I was a single Iowa resident with a child until April. In April, I moved to Minnesota with my daughter. While a resident of Minnesota, I received a 401K payout, but did not have a job with a Minnesota business. I did, however, receive money from sources in Michigan, California, and Iowa.

    Then in September, I got married. My husband was a full year resident of Minnesota. I’m at a loss when it comes to the state taxes. When working with software, it’s requiring me to file married and enter his wages for Iowa, but he was never a resident of Iowa, nor did he make any money from Iowa sources.

    Any advice is helpful. Thanks!

    Beth

  205. Donnarae on Fri, 6th Apr 2012 10:01 pm
  206. My daughter’s residence is in Illinois. I claimed her as a dependant. She worked in Utah for 2011 while attending college. Do she need to file a Illlinos return and a Utah return?

    Thanks,
    Donnarae

  207. Admin Roberg on Sat, 7th Apr 2012 11:58 pm
  208. Hi Ning,
    I’m going to make it even more confusing–California will tax your wife’s income even though she doesn’t live there if you’re filing jointly. You might want to get some professional help with this one. California tax law is different from most other states. I’d hire a California tax professional to make sure it’s right.
    Here’s a clue: everthing I know about California tax law I learned from having to represent people who didn’t have a California preparer do their California taxes. Handling a non-resident spouse’s income incorrectly is a very common problem.
    If you insiste on tackling this yourself, the best advice I can give is to make sure that you read each line on the tax return and answer the question exactly how it’s asked–not how you think they should be asking it. I know it sounds crazy–but you’re used to doing New Jersey taxes and the rules for California are very different. It’s worth the money for you to hire a pro this year.

  209. Admin Roberg on Sat, 7th Apr 2012 11:59 pm
  210. Hey Rani,
    Living in Georgia changes everything–you owe Georgia the tax on the money you earned in Florida. Sorry.

  211. Admin Roberg on Sun, 8th Apr 2012 12:06 am
  212. Hi Beth–
    Rule 1–you must do the federal return first. Married filing jointly.
    When it’s done-you do the state returns.
    Your husband is a full year resident of Minnesota. You are a part year resident of Minnesota.
    Your husband is non-residnet of Iowa, you are a part year resident of Iowa.

    If the software won’t allow it–try being a full year resident of Minnesota and a non-resident of Iowa–the taxes should pretty much come out the same way.

    Here’s a little State Income Tax class:
    wages earned are taxed to the state they are earned in–same with self employment

    pensions, interest and dividends, and other investment income are taxed to the state you live in.

    Hope that helps.

  213. Admin Roberg on Sun, 8th Apr 2012 2:12 am
  214. Hey Donnarae.
    It all depends upon if she made enough income to require her to report it. If she has to report her income, she files as an Illinois resident and a Utah non-resident.

  215. CRK on Mon, 9th Apr 2012 4:29 pm
  216. I will try to make this as clear as I can,

    Me and my wife lived in Illinois for 3 months before moving to MO and are staying there right now.

    My wife was employed in IL all through 2011 and has had income tax withheld in Illinois only.

    I worked in MO for the first 6 months in 2011 and had MO taxes withheld. I then changed jobs and worked in IL for the last 6 months and thus IL taxes were withheld.

    What I understand from looking at the MO-NRI form is that we have to pay MO taxes on income earned WHILE we were MO residents.

    - Would that be a 3/4ths of my wife’s wages (since we lived in MO for 9 months out of 12)?

    - for me would that be 1/2 of my MO wages (since I lived in IL for the first 3 months while working in MO) and all of my IL income (since I lived in MO while working in IL)?

    - I am going to put in 3/4ths of my interest and dividend income since that was generated all over the year.

    Also if doing that is correct that how would I handle the Illinois taxes since they want to tax me on income that we had working in IL even though we were living in MO for most of the year.

    Thanks in advance.

  217. John on Mon, 9th Apr 2012 8:33 pm
  218. Could you give me an advice on my tax return:

    I lived and worked in Virginia for 11 months in 2011 before getting a job in NJ in December. I rented an apartment in NJ for december but I was travelling back and forth to Virginia on the weekend. Should I file as a part year residence in NJ and a part year residence in VA? If so, what should I use as my address on each tax return? Does the address matters if I intend to travel back to forth (as in Friday and weekend in Virginia, then live and work from Monday to Thursday in NJ ? It’s a permanent job but then things can change.

    Thanks

  219. Admin Roberg on Tue, 10th Apr 2012 2:53 am
  220. Hey Sunny,
    I would file as Missouri residents and Illinois non-residents. Do a credit in Missouri for tax paid to Illinois. That’s the easy way to do it and it will give you the same tax result as if you messed around with all the part year issues.

  221. Admin Roberg on Tue, 10th Apr 2012 2:58 am
  222. Hey John,
    It sounds to me like you are still a resident of Virginia and a non-resident of New Jersey. For 2011 anyway.

  223. john on Thu, 12th Apr 2012 4:58 am
  224. Sorry, 2 more questions:

    1) I used TaxAct to complete my part year residence state income tax return. The program says to attach W2 and also 1099 forms if I go with paper filing. Does it mean all my 1099s? I have 1099-div, 1099-G, 1099- etc etc.

    2) I have to file 2 part year residence state income tax returns, 1 for NJ and 1 for Virginia. Do I need to include all the W2s for each tax return? I have a W2 from NJ and a W2 from Virginia.

    Thanks

    John

  225. Paula on Fri, 13th Apr 2012 12:11 pm
  226. Hello,

    My husband and I live in Florida. I work p/t in Florida. My husband works for a Georgia based company and travels to GA for work. He leaves Monday morning and stays in a hotel until Friday (returning to FL on the weekends). Some weeks he travels for work. He leaves from Jacksonville, FL airport and travels to different states (mostly OH) where he will stay and work for upto a week (again, staying at a hote – paid for by work). He also gets a per diem. I know I have to file a GA State Income Tax Return as well as a Federal Return. Do we have to pay GA State Income Tax on money earned while not physicallly working in the State of GA?

  227. Kami on Fri, 13th Apr 2012 2:05 pm
  228. I moved to IL from WI 9/30/11 to take a new position for the same company (corporate office instead of satelite location). My employer never switched my withholding to IL from WI. I know I need to file in both states, but how will this affect my returns?

    Also, after moving to IL we rented out our home in WI and have rental income from the WI home for 2 of the 3 months we have lived in IL. In which state do Iist that income?

    Thanks much!

  229. Susan on Fri, 13th Apr 2012 10:48 pm
  230. I am a dependent in Iowa, but I work and attend college in Illinois, where is my residency? do I need to file for both Iowa and Illinois?
    Thanks!

  231. Tora on Fri, 13th Apr 2012 10:58 pm
  232. I’m trying to complete my nephew’s Maryland tax returns and I’m at my wits end. My nephew was in high school until he graduated in June 2011. He turned 19 on 12/20. I don’t think my parents can claim him because he is no longer in school (they are his legal guardians).

    The thing is since he was in school his employer considered him exempt and did not take taxes out of his wages until after he graduated. It’s been a while since I lived in Maryland but I thought you could file ‘EXEMPT’ if you were in school. Or is that only for full year student?

    Thanks! Even though I’m totally confused.

  233. Admin Roberg on Sat, 14th Apr 2012 1:11 am
  234. John, John, John, John, John!
    Why are you paper filing? What’s the percentage of efiled tax returns that get audited? One half of one percent! What’s the percentage of paper filed tax returns that get audited? 25%–that’s twenty-five percent. Which group do you want to be in?
    You’re using Tax Act–a computer program (ahem–not Roberg Tax Solutions 1040.com?) –you have internet access. You reall should efile.

    But–maybe you can’t. In that case–basically, any form that has tax withholding on it needs to be mailed with your tax returns. The states only need the documents that have income/withholding from that state.

  235. Admin Roberg on Sat, 14th Apr 2012 1:38 am
  236. Hey Paula,
    Your situation really depends upon how the employer sees it. If your husband’s W2 says that all of his income is from Georgia–then you pay tax to Georgia on that income. If the company attributes some of that income to Ohio–then you’ll have Ohio taxes as well. I’m guessing that it’s all Georgia income though. So yes, you’ll have to pay tax on all of your husband’s income to Georgia.

  237. Admin Roberg on Sat, 14th Apr 2012 1:49 am
  238. Hi Kami,
    Your rental income on your Wisconsin home is attributed to Wisconsin. If your employer attributed your Illinois income to Wisconsin it messes things up a little. Normally, I’d have you file two part year returns and it would work out nicely, but it looks like all of your income looks like it comes from Wisconsin. I’d file a Wisconsin return and leave Illinois out of it for this year. Make sure your withholding is fixed for 2012 and pay Illinois next year.

    I know this sounds like you’re cheating Illinois–normally I’d have you file an Illinois return with a credit for taxes paid to another state–but you won’t be able to file a part year along with a credit to another state so you won’t get a fair return. Also–it will really mess things up for the folks who work at the Illinois Dept of revenue. So be kind and file for Wisconsin only.

  239. Admin Roberg on Sat, 14th Apr 2012 2:11 am
  240. Hi Susan,
    You are a resident of Iowa and a non-resident of Illinois. Check the guidelines for if you even have to file a tax return in either state depending upon your income.

  241. Admin Roberg on Sat, 14th Apr 2012 2:16 am
  242. Hi Tora,
    No wonder you’re confused, you’ve got a couple of issues to deal with.
    First–”exempt” means that you don’t have to pay income tax. That usually works for a summer high school job, but once a person graduates (and even some kids who are still in school) it’s not a good idea to claim exemptl
    So–your nephew is going to have to pay.

    Now the other issue is, can your parent’s still claim him? Technically they can because he was in school until June. That might be something they all want to discuss. Where’s the best benefit for claiming him? If he’s not going to college, they won’t be able to claim him next year. But this year there’s a little flexibility.

  243. Susee Harkins on Mon, 16th Apr 2012 2:10 am
  244. Evening Admin Roberg…
    Like everyone else here I moved this year, (from Mich to Georgia) my problem is this, the software (freetaxusa) I used doesn’t allow two state returns, so I’m trying on other sites but It’s driving me nuts, ? IS: Do I have to enter ALL of my info I entered for the federal in order to get the state as I have 5 w-2′s, (not a problem if I do other than the large amount of work) but is there any way to enter the state income & taxes paid, without doing all the fed over again! aaarrrggg ~ I hate tax time!!!

    Thank you,
    Susee Harkins

  245. Admin Roberg on Tue, 17th Apr 2012 2:17 am
  246. Hey Susee,
    I feel your pain. (Seriously, been there done that!) You pretty much have to redo the federal to get to the state returns. If you use my 1040.com software, you get all the states for one price. (Great commercial spot don’t you think?)

    But before you do that–will your software to a part year state? If so, you can check out the individual state tax sites–they’re usually something like http://www.dor.statename.gov just try googling them.

    Some state will let you file their state return for free and if it’s an easy state then you might just be able to do it without the hassle. It’s worth looking at anyway. Good luck.

  247. Jason Wu on Tue, 1st May 2012 2:46 am
  248. I am now living in MA. Since May, I will take a temporary job in CA, and I will live and work in CA for the rest of 2012. I will not have any other income in MA. My family will still living in MA. I am thinking to keep my MA address (where my paycheck sent to) and my car registration/driver license at MA. However, I am not sure how this will affect my state tax filing. Is it better (considering the tax) to just change everything (address, car reg, driver licence) to CA?

    Thank you.

  249. Jason Wu on Tue, 1st May 2012 3:23 am
  250. Sorry, forgot to mention that the company employs me is in NJ, I go to CA to serve my employer’s client. So the paycheck is sending from NJ.

  251. Admin Roberg on Thu, 3rd May 2012 2:37 am
  252. Hi Jason,
    this is kind of my specialty. Now, California is a little different from the other states, so I really want you to maintain your Massachusetts residence. I’d probably recommend that no matter what–but especially with California.

    You are going to pay taxes to Massachusetts as a resident, and taxes to California as a non-resident. Massachusetts has the health insurance thing which may make you want to file as married filing separate for MA–you’ll probably have to play with that, but it should be an option for you.

    Now–more importantly–you said that you were on temporary assignment in California. Will the assignment end within a year? If yes–then my next question is — will your employer pick up all of your housing and meal and transportation costs? If not, you may be able to deduct those things as employee business expenses. For some people, this makes a huge impact on their tax returns. This is also my other reason for not changing your residency if your assignment is known to be temporary.

    I’ve saved people thousands of dollars on their tax returns because of the temporary assignment rules. It doesn’t work for everybody, but for some people it’s a great deduction.

    Now, if your job really isn’t temporary–you can’t take those deductions. You’re going to want something in your hand that says–temporary assignment from date to date to back up the claim.

  253. Admin Roberg on Thu, 3rd May 2012 2:41 am
  254. Hey Jason,
    Let me guess–company in New Jersey–IT technician? Send me an email–I’ll talk you through what receipts I’m going to want you to save. Generally, the temporary assignment folks are in health care and IT. Once you said the company was based in New Jersey, my brain said IT. (I do a lot of these types of returns.)

  255. Patty Christopherson on Mon, 7th May 2012 4:53 pm
  256. My husband and I work for a Lutheran mission agency out of MN. We live in IL when we are stateside, and use my mother’s address as our permenent mailing address when we are overseas (Peru). In 2011, we lived in IL from January to July, and then moved back to Peru, and will be here for at least 2 years.
    When I did our income taxes, I only claimed residency in IL until the end of July. Now we got a letter claiming we owe $450 more (ouch!), and that we are being taxed on the whole year in the state of IL. Because our mission uses our IL address, do we have to pay taxes if we don’t live there, don’t own a home there, etc?
    Thanks for any help you can give me.
    Patty

  257. Admin Roberg on Mon, 7th May 2012 7:29 pm
  258. Hi Patty,
    This is one where it would be easier to see the return–but here are a couple of ideas.
    1. If you are claiming a full year residency in Illinois–then Illinois will tax all of your income. You may need to change to part year residency.
    2. You may have filed as part year, but did something else to look like you should have claimed full year–not sure but possible.
    3. Since you’re going to be out of the country for 2 years–you could wait until July and amend your return using a foreign income exclusion (form 2555). You have to have a full year out of the country which you won’t have yet, but you will have soon. Using that foreign income exclusion could take care of that Illinois problem (and should reduce your overall federal income too.) The income exclusion will be prorated for 2011, but it should still help a bit.

    Bottom line–it all depends upon how you intend to claim your Illinois residency. I’ve got some clients that travel and work all over the country–yet they claim a Missouri residency and they always have Missouri taxes.

    You’re really not living in Illinois so I would think Illinois would not be taxing you on the non-Illinois income–so the question would be, what are they seeing? It might be that you’re just missing a schedule that should have been sent with your original return.

  259. Patty Christopherson on Wed, 9th May 2012 5:06 pm
  260. I wrote with a question yesterday, and appreciate your time in answering me. I do have a few follow up questions.

    I did fill out a form for IL for part-time residence, calculating what part of our income we received while we lived in IL. Our W-2 is blank as far as the state income is concerned. I called the IL Dept of Rev, and they told me we could have our mission write us a corrected W-2 or a letter on official letterhead stating that we only lived in Il until the end of July. Does it sound like I understood them correctly?

    My other questions has to do with the EIC. We did take the Federal Earned Income Tax Credit, which we wouldn’t get if we use Form 2555. Could that be the problem? Also, can we take the EIC in the future if we are living overseas, or is it only for those in the US? Our salary, married filing jointly is about $28,000.

    Thanks again,
    Patty

  261. Admin Roberg on Thu, 10th May 2012 11:58 pm
  262. Hi Patty,
    your are absolutely correct in your understanding. Either have the mission correct the w-2 or write you a letter. I’ve found Illinois to be pretty good to work with when they say this is what you need–if you send it–it’s taken care of. And what they said makes sense so do that.

    Now for the EIC–here’s the kicker, the rules don’t say that you can’t live overseas. BUT–and it’s a big BUT—your qualifying children have to live with you in the United States for over 6 months of the year. If you’re all living in Peru together for the entire year in 2012–then you won’t qualify for EIC. If one of you were back in the states with the kids–that would be different. But if I understand correctly then you’re all together and won’t be back in the States until 2013. No EIC for 2012. Sorry.

    Here’s a link to the IRS website just so you can see where I’m coming from: http://www.irs.gov/individuals/article/0,,id=218779,00.html

  263. Dianne Pritchett on Thu, 24th May 2012 1:43 pm
  264. My husband and I own a home in Texas and just recently moved to Virginia for our jobs. However my job is in Maryland, what state do I file taxes for in 2013?

  265. Admin Roberg on Thu, 24th May 2012 7:17 pm
  266. Hi Diane,
    You want to file a part-year resident return for Virginia, and a non-resident return for Maryland. The reason you want to do a part-year for Virginia is so that you’re not taxed in Virginia on the income you earned while you lived in Texas which is tax free. Getting these right when you’ve left a no-tax state can be a little difficult. Make sure you go over the return carefully to make sure you’re not over paying or underpaying.

  267. dquinn1575 on Wed, 30th May 2012 11:31 pm
  268. My son lives in IL but is in school in OH and is working there. The school is withholding OH state (and some local) tax.

    I believe he has to file non resident tax form in OH. I also see that IL and OH do not have reciprocity.

    I believe he will have tax liability in IL at its 5% rate. Will he have tax liability in OH?
    If so, how much. If not, will he get a refund from OH for the amount paid in?

    Thanks

  269. Debbie on Thu, 31st May 2012 3:51 pm
  270. We moved from WA state this year (2012) and are renting in MO. My husband works in MO and we are trying to find a house. By the sounds of it, we would be better off in MO in regards to taxes. However, we will still need a small home in KS for weekends (If we don’t live there full time). Would this be considered a “vacation home” and that we would avoid double taxation?

  271. Admin Roberg on Tue, 5th Jun 2012 1:48 am
  272. Hi dquinn–
    I don’t have any numbers to work with here (and I don’t actually do tax returns in the comments anyway) but I think I can give you some information.

    Your son will file as a resident of Illinois and a non-resident of Ohio. He will get a credit for the tax he pays to Illinois–that will be based on the actual tax liability if he has any–not the amount that was withheld from his paycheck.

    Often, college students don’t have a tax liability with their school jobs and they don’t even have to file. Of course, your son will want to file anyway to get his refund. And–also there are students who do work and earn enough that they do owe tax so withholding is always a good idea.

    Basically, if your son earns less than $3700 for the year–he should get all of his Ohio withholding back and he won’t owe Illinois anything either. If he earns more than that–well there will probably be some taxes involved. Hope that helps a little anyway.

  273. Admin Roberg on Tue, 5th Jun 2012 2:04 am
  274. Hi Debbie,
    Welcome to Missouri! Okay so right now you live in Missouri and your husband works in Missouri. All good all Missouri taxes. The issue is–what if you get a house in Kansas?
    If you move to Kansas–straight up buy a house and live there–you would file a Kansas resident return and a Missouri non-resident return. Kansas would give you a credit for the income tax that you pay to Missouri. Depending upon your income–Kansas taxes can be lower or higher than Missouri’s. You may want to run some sample returns to see how they compare.
    Now if you chose to live in Missouri and just have a vacation home in Kansas–that’s different. You would file a Missouri tax return, but you wouldn’t be filing a Kansas return at all–unless you rented out your vacation home for income or something like that.
    Bottom line–you would not be subject to double taxation no matter where you live.

  275. Karen on Thu, 7th Jun 2012 6:15 pm
  276. I work for a company in MN but own a home in GA. In 2011 I spent more than half of my work time in MN and worked the balance from my home office, but in 2012 I will likely work from home more than half of the time and travel to MN a couple of times a month. In 2011 my employer withheld MN tax and I filed a non-resident return for MN, paid the state income tax. I also filed a resident return in GA and due to the credit for taxes paid in MN had no state tax liability in GA. Going forward, I’m wondering if I should allocate my salary to MN and GA based on the amount of time that I spend working from each site? If so, what kind of documentation will I need to have since I’ll only get one W-2 and withholding will go to MN. Or is there some other way that I should structure things so that Georgia is my “tax home?” Thanks!

  277. Admin Roberg on Sun, 10th Jun 2012 12:05 am
  278. Hi Karen,
    Georgia is your tax home–100%. Technically–and I say technically because most companies just aren’t sophisticated enough to do this–technically you should have MN withholding when you’re working in Minnesota and GA withholding when you’re working from home.
    If you’re only in Minnesota once in awhile–then you should have GA withholding all the time and the Minnesota time would be considered “minimal” and you wouldn’t have any MN withholding or tax.
    But you seem to be in MN enough to be considered a Minnesota employee. You’re still going there three times a month.
    Really, it’s going to be up to your payroll department. Do you submit to them weekly timesheets of what city you were in while you were working? I’m guessing you don’t. And I’m also guessing that your travel may be sporadic enough that they couldn’t just say X days tax in Minnesota, and X days to Georgia. So, you’re probably going to be stuck with the Minnesota non-resident and Georgia resident return.

    But here are some thoughts for you: When you’re in Minnesota–are all of your expenses reimbursed? If not, don’t forget to be claiming your employee business expenses for the time you’re up there. And also, I’m guessing you already know about claiming your home office deduction–since it’s for your employer’s convenience to not have to fly you up to Minnesota every week.

    It may not help (because they don’t help everyone), but it’s worth checking into the employee business expenses. It sounds like you’ve got one of those jobs that definitely qualifies.

  279. Pat on Fri, 15th Jun 2012 7:06 pm
  280. Hi,

    I am a New Jersey resident and work for a CA based company. How should I pay state taxes. From what I read, it seems that I will need to pay the state tat to NJ as resident, but pay CA none resident tax. What is the tax rate for none CA resident? While my wife work and life in NJ as well, if we file tax jointly, will her income subject to CA none resident as well?Thank you.

  281. Admin Roberg on Sat, 16th Jun 2012 1:30 am
  282. Hi Pat,
    Here’s my question to you: do you actually work in California? I think the answer is no–and in that case, you only file a New Jersey tax return. Lots of people work for companies that are based in other states, but they never ever go to work at the headquarters. If that’s your situation, then don’t worry about California at all.

    If you are working in California, then you are a non-resident of California and a resident of New Jersey. Your wife’s income should not be subject to California tax under any circumstances. I hope that clears it up for you.

  283. Ariel on Sat, 16th Jun 2012 9:52 pm
  284. HI there! My situation is tricky. I am originally from FL. Lived there 18 years. Then I went to college in CA (so far for 2 years) and this summer I am going to work at an internship in Michigan. I am filling out the federal W-4, MI-W-4, and the Local Tax Withholding Form. I have a couple of questions about these forms:

    1) They are asking me for where my residence lies. Should I put that I am a resident of florida or of the city I am temporarily living in now?

    2) Where can I find out whether I live in a taxing city/district/county?

    Thank you

  285. Admin Roberg on Sun, 17th Jun 2012 1:54 pm
  286. Hi Ariel,
    I understand your confusion. For regular income tax purposes, you might still be a resident of Florida (especially if your parents are still there.) But for this particular case, they’re asking you where are you living right now. That’s so they can determine if you need to pay local taxes. Here in St. Louis, if you live in St. Louis city, you pay a city tax on your wages. If you’re outside of St Louis city limits, and live in St Louis county–you don’t. (Unless of course you work in the city, everyone who works within the city limits pays the city tax.–Confused yet?)

    Figuring out if you live in a taxing district can be tricky. Here, there’s actually a booklet that you can get online and you look up your zip code and for some people, half the zipcode is in the city and half is out. Like I said, it’s a whole booklet of addresses.

    For you, the simplest answer might be to go to the human resource department where you work (or the payroll person) and just give her your local address. She probably knows the local tax districts much better than you do.

    Bottom line though–use your local address.

  287. Yvonne Dominguez on Tue, 19th Jun 2012 10:09 pm
  288. Hi, I have a question. Does an employer based in California, but working in Guam have to pay CA state taxes for wages paid to thier employees? The main office is in CA, but they have a temporary construction job in a military base in Guam. Several employees, residents from California, went to Guam for several months to help complete the project. They also hired some local guam citizens. The accounting software automatically stopped calculating CA state taxes when the location of the job is entered. Based on information we have found, it seems like when the employees file thier return, they might owe taxes for work performed out of state. Would the employer also have to pay california state taxes for labor out of california? Thanks for any insights on this issue!

  289. Admin Roberg on Wed, 20th Jun 2012 8:34 pm
  290. Hi Yvonne,
    I answered you privately but I’m putting my quick answer here because someone else might need to know. Basically, I said to contact the California Department of Revenue on this because they are the final authority.

  291. Apu on Thu, 21st Jun 2012 11:12 pm
  292. Hi,
    Im a travelling consultant, my house is in NJ. For the last 11 months im in Texas without travelling to NJ, I claim expenses for my stay in Texas from the client. Now my question is if I complete 1 year in Texas should I compulsorily take a one month tax break? If not should I pay any tax for the expenses I claimed.

  293. Admin Roberg on Sun, 24th Jun 2012 2:34 pm
  294. Hi Apu,
    That’s a good question. When you are a traveling consultant (or perform any kind of traveling work) the point of being able to claim your expenses as a traveler is that you don’t stay in any one place for over a year. Once an assignment exceeds a year–then you can’t claim your traveling expenses as a tax deduction any more.

    So here’s my question to you–it sounds to me like your assignment in Texas wasn’t supposed to exceed one year–but now it is. In that case–it’s okay that you claimed those expenses because your job at the time you took it, was supposed to be temporary. But now it’s going to be over a year? Is that the case?

    But it also sounds like you are able to take a one month break for tax purposes–so you have a lot of flexibility there. My question to you would be–would you lose more income by not working in Texas, than you would gain in tax breaks?

    Also, I’m not sure if this applies to you, but one of my clients had this situation–he had a temporary job in California–then he got another temporary job in another part of California. Texas is a big place–so if you’ve been moving around Texas–those are different temporary jobs. I’m guessing you’ve been in one spot, but I thought I’d mention that in case it applied to you.

    So bottom line is: what’s best for you? I don’t think you lose any tax expenses you already claimed because at the time you took the job it was supposed to be temporary. So for you it’s all moving ahead. Will your client take you back if you take a month off? Will they give you a new temporary contract? Do they want to keep you permanently? (Texas has no state income tax!)

    Sorry, seems I only have more questions for you and no answers.

  295. todd w. on Fri, 29th Jun 2012 9:53 pm
  296. Me and my wife work in missouri and she lived in illiniois the entire year, but i lived in missouri for 7 months out of the year and then moved to illinois. We filed jointly on federal, jointly on missouri non-resident and then the person doing our taxes put that we didn’t live in illinois the whole year (since i didn’t). We just got a letter stating they changed us to residents. I looked and if one resident lives in illiniois the whole year and you file jointly, you both would have to be considered full time residents. We can make an ammendment and file separately so i would only claim 5 months in illinois. The problem is that the tax return to missouri was filed jointly so the only amount i have to give illinois for money paid to another state is for both of us. How should i handle this. Do i need to make an amendment to the missouri taxes and file separately? Can i take the amount paid for both of us and us a percentage based on wages? I am stuck on how to get the correct amount that each of us paid to missouri and provide proper documentation to illinois.

  297. Craig on Sat, 30th Jun 2012 2:16 am
  298. Hello. I greatly appreciate your help.

    I am a resident of Illinois who works for a company based in Illinois.

    I am relocating to North Carolina for non-business reasons, but my company has agreed to pay me to telecommute from my new location for a full 12 months after which I will leave the company and continue residency indefinitely in NC.

    Essentially, I will be transitioning from Illinois resident to North Carolina resident in the middle of the 2012 year. However, my company is located in Illinois.

    Am I correct in assuming that I will simply file as a part-year resident in each state, and only pay state taxes to whichever state I’m living in at the time (first part of the year to IL; second part of the year to NC)? Or does the fact that my company is located in IL impact additional taxes being due to IL in the second part of the year even though I will no longer be a resident of IL?

    Thank you!

  299. Admin Roberg on Sat, 30th Jun 2012 8:17 pm
  300. Hi Todd,
    Here’s what I would do. I’d only change your Illinois return, as they are the only ones complaining. You can get your Missouri tax from line 30 of the Missouri 1040-that’s your actual Missouri tax and it’s separated out from your wife’s tax. That’s the number that you need for your credit for taxes paid to another state.

    Question for you–are you really saving that much by filing separately? You could be, depending upon your income, It’s just that my quick gut reaction was that for most people, claiming a full year residency in Illinois wouldn’t be hurting you that much on your taxes. (For some people it would, and I’m guessing that you must be in that category, but thought I’d bring it up, just in case.)

    Here’s my other question–you had your return professionally prepared–why isn’t your preparer doing your amendment for you?

  301. Admin Roberg on Sat, 30th Jun 2012 8:23 pm
  302. Hi Craig,
    You’re absolutely right. You will file a part year return for Illinois and a part year return for North Carolina. Make sure you talk to your human resource department to have them withhold taxes for North Carolina for you.

    Don’t worry about the fact that your company is headquartered in Illinois. That makes no difference on your personal tax return. The important thing is you. (It’s all about you!) Seriously, where you physically live and work is what matters on your tax return.

  303. Bryce on Sun, 1st Jul 2012 3:16 am
  304. Hi, i work pipeline contruction and last year i was working in nevada. nevada has no state taxes and i claim residency in oklahoma so i owed oklahoma alot of money and i do not really understand why. to keep from this in the future i need to know when working in states with no state taxes what do i need to do?

  305. Admin Roberg on Sun, 1st Jul 2012 5:57 pm
  306. Hi Bryce,
    Living in a taxing state and working in a no tax state can present a real problem. There are basically two things you can do–and it sort of depends upon your employer. The first option (and easiest for you) is to have your employer withhold state income taxes on your home state even though you’re working in another state. Some will do it, some won’t. It depends upon the company. They may not want to do that if they have numerous employees working all over the country and they’ve got a strict–we tax based on the state you’re working in. (It’s a valid rule and makes sense.) Also, some small companies might not be able to handle multiple state tax issues, so I understand that too.

    If your employer won’t (or can’t) change your withholding to your home state, then you’ll want to start making estimated tax payments to Oklahoma. There are computer programs that will figure out how much you should be withholding, but the quick and dirty way is to take what you owed last year and divide it by 4. Then make 4 quarterly estimated tax payments.

    Given that you missed the April and June payments, I’d make 3 payments (pay June’s late.) You can get payment vouchers for Oklahoma at their website: http://www.tax.ok.gov/it2011/OW-8-ES-12.pdf You also have the option to pay online.

    One final thing–if you are a resident of Oklahoma and you’re working a temporary assignment in Nevada–you may be able to deduct some of your living expenses while you were in Nevada as an employee business expense. The assignment would have to be for less than a year, and your costs would have to be out of pocket (not paid by your employer) but that might help reduce your tax burden–just thought I’d mention that in case it helped.

  307. Misty L on Mon, 2nd Jul 2012 12:45 pm
  308. I have an unusual questiion. I am a District Manager for a company. We are all “field” employees, so I am based out of my home office in Kansas City, MO. I pay MO state taxes and Kansas City city tax. The stores that I oversee, there are 5 in Kansas and 2 in Omaha, none in Kansas City. A few of us were just recently laid off. Which state do I file for unemployment in, Kansas, since thats where the majority of my stores/work is, or Missouri, where I pay my taxes?

  309. Admin Roberg on Mon, 2nd Jul 2012 2:30 pm
  310. So Misty,
    How did you know I was working on payroll tax issues today? Good timing! Seriously, I’m going to be filing my Missouri unemployment tax and I paused to check my email first.

    So–since you live and base your office out of Missouri–I’m guessing that your company pays it’s unemployment tax on you to Missouri. So you will file for unemployment with the state of Missouri.

    Here’s a link to the Missouri unemployment website: https://www.ui.labor.mo.gov/som/ File right away, it takes some time to get things started so file now. (From the been there done that school.)

    Good luck on the job hunt! Sometimes, being downsized can be a blessing. Hopefully this is a blessing for you too.

  311. Carrie on Tue, 3rd Jul 2012 1:26 am
  312. In 2009 I was receiving unemployment benefits for NC but moved to Florida in March of that year. I filed my taxes in the state of Florida. The other day I got a letter from NC stating I owed state taxes to them for that year. Should I have filed NC taxes since I was getting unemployment from that state during that time?

  313. Justin on Tue, 3rd Jul 2012 9:11 pm
  314. My situation is a bit different than the others: I live in NY and worked in California for 6 days. I filed a non resident tax form in 2008 for the work I did there. I found out last year, I didn’t receive the w2 from the company and my income increased by 11K, but all of that new income was earned in NY. I paid the IRS and the NY Income taxes and things should’ve been settled! Since then, I received something in the mail from CA saying I owe them more taxes, even though all of the underreported work was in NY. I challenged it amd they agreed and now they want me to file an amended tax form with the new income even though I owe them nothing. I don’t think I need to do anything since I owe them nothing…What should I do?

  315. Admin Roberg on Wed, 4th Jul 2012 5:01 pm
  316. Hi Carrie,
    You will have to pay tax to North Carolina for the unemployment compensation you received from them. I’d file a part year resident return for North Carolina. Basically, you’ll pay taxes to NC on all of the unemployment compensation you received from them.

  317. Admin Roberg on Wed, 4th Jul 2012 5:35 pm
  318. Hi Justin,
    I’m still back on “worked in California for 6 days and filed a return”. Now there are situations where it makes perfectly good sense to file a return–and I’m assuming that you fit into one of those reasons. Therefore: file the amended return.

    Here’s why–California received that information on the extra W2 so without an amended return, California thinks you owe them tax on that money. Without the amended tax return to prove otherwise, they’re going to keep that debt on their books.

    You don’t want the state of California to be after you for money. Trust me on this.

    Look at it this way. Let’s say you gave your landlord your rent check for $1000. Your landlord somehow forgot to record it and he called the police to put you in jail for not paying the rent. (Really happened to one of my employees many years ago, different state.) Well you’d just find the cancelled check and prove to the police that you really paid the rent so you could get out of jail, right? (That’s how we got my employee out of jail–what a stupid mess.)

    Anyway, that’s kind of what you’re doing with California. They don’t know that you don’t owe so you’re going to have to prove it. What they do know is that you didn’t report all of your income and so as things stand with them now you’re a liar and a cheat and they want their money. (I know you’re not a liar and a cheat, it’s just that’s the way they’re seeing it.)

    File the amended return.

  319. Justin on Wed, 4th Jul 2012 9:33 pm
  320. Great, thanks so much!

  321. Simone on Thu, 5th Jul 2012 1:10 am
  322. I currently live/work in NC and will be moving to FL at the end of the year, working remotely. I’ve read through some of your responses and am still unsure what I should expect tax-wise. I own a home in NC which my father will live in until I can sell it. Since FL has no state income tax I’m guessing my employer will tax my pay the NC rate since it is higher? Also I’m guessing that my dad’s “rent” will be considered rental income which will be taxed insanely. I’m really bummed about that because being single with no children, the house is really the only tax break I have. Any guidance would be appreciated.

  323. Simone on Thu, 5th Jul 2012 1:49 am
  324. I should add that in FL I will be working from home. Also since FL has no state tax, would I have to report anything to them? I plan to remain a resident of NC (car registered there, voting records there, etc) since I do not think I will be in FL for more than a few years.

  325. Admin Roberg on Thu, 5th Jul 2012 3:47 pm
  326. Hi Simone,
    You’ve got a few issues there so I would recommend that you find a person to do a good “sit down” and discuss your situation. Because I think there are many things may work for you–but some things are better discussed in person.

    That said, here’s my “shoot form the hip” kind of response. (A sit down with a competent professional is better–I’m just going to give you more of a big picture idea.) First–once you relocate to Florida–you will be living and working in Florida and therefore will not have North Carolina withholding. You need to make your employer aware of that and you should not be paying North Carolina withholding once you relocate to Florida. (I’m assuming the relocation is permanent.)

    About the house–Your Dad will be paying rent–and yes that’s taxable income to you. Remember though that the mortgage, real estate taxes, insurance etc that you pay are all deductions against the rental income. Also, you will be able to depreciate the house and that will give you another deduction. (You recapture the depreciation when you sell the home–this could cost you but usually claiming the depreciation while renting is still better.)

    Now this is why I want you to sit down with a professional:
    1. the whole depreciation thing–yes it’s a good deduction, but you do claim it when you sell (it’s called recapture.) You want someone to look at your situation and show you how bad it is–or how sweet it is, for you.

    2. Your Dad will be renting your home–there are special rules about renting your home to family. Will your Dad be getting a discounted rate or will he be paying the same as anybody else? Different tax rules apply.

    3. An option may be–keep the house as a second home, let your Dad stay there to help you “stage it” and maintain it, and not count it as a rental. You keep the mortgage on your schedule A deduction.

    Bottom line–there are lots of questions and lots of options. And most important: what’s best for Simone? You want to crunch some numbers. If you go here and type in your zip code, you can find a local enrolled agent who can help you: https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

    There’s so many variables there I can’t possibly know and you wouldn’t want to post them online. But this is a case where paying for a little advance planning now can save you lots of dollars later.

    Good luck!

  327. Admin Roberg on Thu, 5th Jul 2012 3:56 pm
  328. @Simone–
    Oops, I should read all the posts before I start answering. So you plan on remaining a North Carolina resident? Then you pay North Carolina taxes. You would be a “non” resident of Florida–but there’s no tax there. But as a resident of North Carolina, then you pay North Carolina income tax.

    Now this could change the rental too. You say you’re selling the house–but if you move back, that would change the whole house situation too.

    Once again, this puts me to suggesting talking to a local pro. You are looking at a couple of years–so I’m thinking “go ahead and change residency”. If your job was for less than a year, I wouldn’t bother either, but for over a year, then I would. Most people like to have a Florida state of residency beause of the tax benefit. It’s something to think about.

  329. Joe Smith on Thu, 5th Jul 2012 9:58 pm
  330. My husband works for the union and he worked last year in Dthan Al
    And our account file his .GA which is where we live and filed his Al
    Too and we got our account.GA state tax but not ALABAMA . Can you’ll me why.5

  331. Simone on Thu, 5th Jul 2012 11:23 pm
  332. Thank you so much! I feel a lot better about what’s ahead tax-wise. I will definitely meet with someone to hammer out what will work best for me. Thanks again!

  333. Admin Roberg on Fri, 6th Jul 2012 3:31 pm
  334. Hi Joe,
    I would check with the Alabama Department of Revenue. Here’s a link to their “where’s my refund?” site: https://myalabamataxes.alabama.gov/_/#2

    You will need your social security number and how much your refund should have been for.

    If you get a “don’t know” type response–(because you may have done that already) it might be that the return wasn’t filed. I see that sometimes. Some tax programs are not capable of efiling two state returns and one of them has to be mailed. If Alabama doesn’t recognize that you filed, go through your tax packet to see if there’s a return with a mailing envelope. Sounds corny, but often that’s the problem.

  335. David on Sat, 7th Jul 2012 2:06 am
  336. Hi,
    I work 630 miles from my home. My permanent residence is in Idaho,
    but I work full time in California. I pay my work wage tax to california during the year,
    i also receive retirement income.
    I tried to file as a part year resident of idaho, but they audited my returns and said I could only have one domicile and all my income is taxed–claiming since i file my federal return in idaho, I am a full time resident even thought i send less then 20 days a year home
    I do file California as a non-resident.
    And I have deducted taxes paid to another state, but seems I am still paying
    high taxes
    MY wife lives in idaho at our home, but works in washington.

    What can we do to reduce or simplify our taxes? Is there such a thing as state deduction for work expenses. in example, traveling to and from work?
    OR would it make sense for both of us to move to california, at least on paper, since 60% of our income is made here in california?

    Thanks for any suggestions!

  337. Admin Roberg on Sun, 8th Jul 2012 12:02 am
  338. Hi David,
    I hate to say this but the problem is not you, it’s your wife! My apologies to your wife. (I hate blaming the wife, bad for business.)
    Here’s the situation–you work in California, so you pay California tax and you get a credit for that in Idaho. But–your wife works in Washington–no tax, no credit for taxes paid to Washington so you have to pay it to Idaho. I’m guessing that’s why your bill is so big.

    Here’s what you do–you file a resident return for Idaho, and a non-resident return for California. You should make estimated tax payments to Idaho based on your wife’s income so that you don’t get hit so badly at tax time. Your retirement income is taxed to Idaho.

    I talk a lot about deducting expenses for temporary job situations, but it looks to me like your job in California is permanent so that’s not going to work for you. Also, you can’t deduct commuting expenses so that’s out too.

    If you’re serious about moving to California–sit down with a California tax preparer and run the numbers for you both living there and your wife working in Washington. You might also want to run the numbers for you living in California and your wife living in Idaho. Two reasons for using a California preparer for this: first, California rules are different from most other states and I’ve had to fix a couple of California returns because people had done them incorrectly–they always made sense by other state rules–but California rules are different. Second, California maintains a high standard for it’s tax preparers–I have more confidence in someone with a California license than another state. (It pains me to say that, being from Missouri, but higher standards brings about better preparers.)

    You gave a good clue in your question–60% of your income is made in California–that means that 40% of your income will be taxed to Idaho. And since I’m guessing you have no Idaho withholding–there’s your problem.

    Good luck.

  339. Eric on Mon, 9th Jul 2012 10:17 am
  340. I am currently deployed to Afghanistan. My works base is in Utah, and I lived in Salt Lake for 4 months working and training before deploying. I filed Utah tax forms, and Utah taxes have been withheld.

    Prior to this I lived in Arizona for 1.5 years and paid their taxes, and before that lived in Illinois with my parents while I was still a student and worked part time.

    My logic was that since I don’t have any other permanent address, and haven’t lived with my parents in over 2 years, I shouldn’t be filing Illinois, and did not have any address in Arizona anymore either. My new address had become 2 different extended stay hotels. I was even receiving mail at these addresses.

    Since I deployed in March, I have had to change all of my mailing addresses to my parents home in Illinois as it is my only way to get my mail over here. I don’t have an address in Utah anymore or any family there.

    Am I wrong to have chosen Utah as my state for tax purposes? Should I switch it to Illinois? Would this make any difference other than a change in tax rate if I switch to paying Illinois? Am I required to chose Illinois since I am having my mail delivered to my parents address?

    I talked to my accountant and he did say this would be fine and appropriate, but I have still been questioning it.

  341. Admin Roberg on Mon, 9th Jul 2012 9:01 pm
  342. Hi Eric,
    Thank you for your service to our country. First and foremost, the IRS doesn’t care what state you use on your tax return. The states do, but the IRS doesn’t.

    Second, your pay while you are in Afghanistan is not taxable. (I’m guessing you knew that, but had to say it anyway.)

    So your only real issue is what state you want as your “state of record”. I’m voting for Illinois, and here’s why–they don’t tax your military income!

    Watch the election results in November (that is if you’re not busy getting shot at and stuff like that.) You’ll hear a lot of talk about the mail in ballots from the military in the states of Texas and Florida. That’s because those states have no state income tax. (There are other states with no income tax, but Texas and Florida get all the TV attention.)

    If you can’t have one of those as your state of record, then Illinois is a good choice because they don’t tax military pay, so it’s a good home state for a soldier.

    For example: right now you’re in Afghanistan so you’ve got combat pay–that’s not taxable at all, but–let’s say your next duty is in Germany. Your income in Germany would be taxable. So let’s say you made $30,000–if you had Utah as your resident state, then your tax for Utah would be $1210. With Illinois it would be zero. See the difference?

    Now, you’ve been withholding based on Utah–and that was the right thing to do because you were in Utah for training so you will have to pay Utah tax on the income you earned in Utah. Just like when you come back–they could station you in a state that taxes military income–you’d still have to pay tax to the state you’re in for that.

    You’re in a situation where you have a choice. You may choose Utah or you may choose Illinois. For tax purposes, I’d go with Illinois. If you really feel attached to Utah, you can move back there after you’re out of the service, but you’re not obligated to claim it as your tax home right now.

  343. Daq on Thu, 12th Jul 2012 3:02 pm
  344. My situation is similar to many of these other college students. My permanent address is in Michigan and I go to school and work in Illinois at the moment. Right now I am getting Michigan and Illinois state taxes taken out of my paycheck. Do I just need to file the non-resident form with Illinois and be done with it, or what should I do?

  345. Admin Roberg on Thu, 12th Jul 2012 4:04 pm
  346. Hi Daq,
    Generally, for students in your situation you would file a non-resident return for Illinois and a resident return for Michigan. You probably don’t need to have any withholding for Michigan as you would have a credit for the tax you paid to Illinois.

    Many college students don’t need to have any state withholding at all, because they don’t make enough to be required to file. That said, it’s always nice getting a refund sometime in late February or early March.

    Unless you’ve got self employment income or investment income in Michigan, you probably don’t need Michigan withholoding from your Illinois job.

  347. Simone on Fri, 13th Jul 2012 10:59 am
  348. Hello again. You gave me some great advice on July 5th but I failed to follow-up on some of the questions you asked in your response.

    You had mentioned that if I charge my dad a discounted rate for renting my home that the tax rules are different. I would just charge him the amount of my mortgage when I would most likely charge about $150 more to a random renter.

    You also mentioned that an option would be to keep my house as a 2nd home and let my dad stay there to “stage it” and maintain it, not counting it as a rental. I really like that option but am curious what proof (if any) I’d need to provide when filing my taxes. I’d still be getting “rent” from him but he really is there to maintain it while I work on selling it. Is there a time limit on how long he and I could have this arrangement?

  349. Admin Roberg on Mon, 16th Jul 2012 9:57 pm
  350. Hey Simone,
    If you charge your Dad less than what you’d charge someone else–you should sit down with a professional about the tax issues involving that. (I would be charging for that advice–it’s a little above the scope of this column.) But I think it would be worth your money to do that.

    The second part–about letting your dad stay there for free–you can’t charge him rent and say he’s staying there for free. It’s one or the other. That’s why you want to sit down with someone and then you can have the “what about this?” “Okay, but what if we do that?” kind of conversation that you can only have with someone in person.

    You can find an enrolled agent near you by typing your zipcode into this link: https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

    Good luck.

  351. Matt Brandt on Wed, 18th Jul 2012 11:43 am
  352. Hello!

    I have a question for you regarding my 2011 taxes. I am an Oregon Resident and got an internship for a company based in Herndon, VA last summer and my wife came over with me for the trip, we drove our car across the country there and back. I was an employee for Goldbelt Inc, and my wife was given a job there as an independent consultant working on the Accounting team with me. She was given a 1099-Misc at the end of the summer. As an employee, I was given a housing stipend on rent through the apartment that Goldbelt rented for the interns, however what they amounted to doing was taking the $4,500 monthly rent for the apartment and splitting it 5 ways between the interns and my wife, and they would take the $900 per person out of our checks, but the way they billed the “housing stipend” was to only take $500 a month out per intern, however my wife was not an official intern and thus not subsidized and they would take $1400 a month out of my checks ($500 for me and $700 for her).

    We had to drive all the way across the country, stay in hotels and pay for meals. I didn’t file the 1099-misc income as self-employment and got a letter from the IRS stating that I owed SE tax for the SS/Medicare that went unpaid in my tax return for her wages.

    Right now I’m not sure when I go to fill out schedule C that if I can claim the cost of “moving expenses” and her portion of rent, and mileage for her self-employment. It was a one-time job, not her registered profession. I have all my travel receipts for the trip there and back, but not any from the time while we were there for the most part regarding driving and meals.

    Am I better off not bothering and paying the ~$300-400 in back taxes or can I fill out those items in Schedule C and reduce my liability? I can tell you that she only made $3390 the whole summer and the rent alone exceeded that wage base. We are fairly broke college students right now and I can’t justify giving away another few hundred dollars if I don’t have to.

  353. Admin Roberg on Thu, 19th Jul 2012 9:01 am
  354. Hi Matt,
    You made a really good point when you said, “not my wife’s registered profession.” And I could go on and on about that–but in your case I’m going to take a different track–because this will be easier.

    The IRS has decided that your wife’s 1099Misc is a business and that she’s self employed. Therefore–because the IRS says so–it is the law that you report all of her self employment expenses–including traveling to the temporary job location and the cost of her temporary housing. It’s the law Matt, you can’t cheat and report income you don’t really have. I’m sorry but you’re going to have to take a loss on your wife’s business. That will probably offset the income you earned as well and the IRS is probably going to owe you a refund.

    I see how you were trying to be patriotic and pay a little extra to Uncle Sam–lots of people try to do that (most of them not intentionally)–but since the IRS insists on counting that as self employment income, then it’s your obligation to claim all of the expenses to offset it.

    Amend your return, get a little money back. Personally, I love to make sure that people get at least a little money back when they get an IRS letter for something like that–I figure if enough people get refunds, the IRS will quit sending those letters. (Never happen.)

    Oh–you can make an argument that your wife is not in the profession of accounting and that she should not have to pay self-employment tax on the money–it’s possible to win but it’s really hard, you could possibly go to court–and the cost of the defense would be more than the tax. (Even though, I think you could even win.)

    But do the Schedule C–write off the expenses–because the reverse would be for the IRS to say–oh–it’s not a business, so she can’t claim the expenses–but they’ve already claimed that it was so you win. Easier–plus you get money (or at the very least pay nothing.) This one’s a winner.

  355. Steve Davis on Fri, 20th Jul 2012 3:36 pm
  356. I am a Florida resident, with a primary home in FL, work in NY State, but rent an apartment in CT. My employer deducts NY State Income Tax from my paycheck. I have no W2 or ‘earned wages’ in CT. I realize that I have to file a Non-Resident return for the State of NY. What obligations do I have to the State of CT? While I work in NY, I stay in my apartment in CT and travel home to FL on the weekends. Thanks!

  357. Steve Davis on Fri, 20th Jul 2012 3:38 pm
  358. Forgot to mention that I am married and my wife lives and works in FL.

  359. Admin Roberg on Fri, 20th Jul 2012 3:55 pm
  360. Hi Steve,
    I say that you are a Florida resident–therefore you pay New York non-resident taxes and Connecticut loses out. Apologies to Connecticut.

    I recommend using your Florida resident address on your tax return when you file and not Connecticut–trust me on this-using your Connecticut address will get you a letter from their department of revenue. The fact that your wife lives and works in Florida adds substance to your claim of Florida residency.

  361. Steve Davis on Fri, 20th Jul 2012 6:10 pm
  362. Thanks for the fast response! Our suggestion is what I expected but one thing still bugs me… I drove 1 of my cars to CT from FL which I use to travel for work form my apartment in CT to office in NY. Even though I don’t consider myself as a CT resident what do I do with the car? Obviously, I hold a FL driver’s license and the car is currently registered with FL plates. Do I have to switch my plates to CT?

  363. Admin Roberg on Sat, 21st Jul 2012 10:51 am
  364. @ Steve,
    I don’t know about switching your plates. How long will you be keeping the car in Connecticut? If the job is temporary–then I wouldn’t, but if you’re going to be doing this commute thing for a couple of years–you may need to switch your plates. I’d check with the Connecticut DMV on that one.

  365. Chellsea on Fri, 3rd Aug 2012 3:16 pm
  366. hi, my husband has lived in florida since 2001 (I met him after). He lived/worked in North Carolina 1999 and 2000. he filed his taxes both years and received Irs refunds both years. Now in April 2012 the state of NC froze our joint bank account and is saying he owes $9000…the paperwork they sent was just an estimate they say he should owe plus penalties and interest. He agreed to make monthly payments of $250 until we get this all solved. Well I don’t understand the point of paying something when he doesn’t owe the state anything. How can we fix this? We just received account transcripts from IRS from both years stating info and that he was issued refunds both years. Please help

  367. Admin Roberg on Fri, 3rd Aug 2012 4:31 pm
  368. Hi Chellsea,
    1999 and 2001? My they are desperate for money aren’t they?

    My first suggestion is to get some help from an EA. Here’s a link so you can find one in your area: https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

    I prepare North Carolina returns, but since you’ve got a problem with the NC department of revenue–I recommend you get yourself a NC enrolled agent. There’s just those little things that a local person knows that a foreigner won’t–it’s a good idea to get some help here.

    Now–here’s what you should be thinking about or looking for–or at least, here’s the red flag that I’m seeing.

    “He filed his taxes both years and received IRS refunds both years.” That’s the red flag–he filed his federal returns (that’s IRS) but you don’t mention his North Carolina returns. Being from Florida–you Florida folks don’t pay state income tax. North Carolina has a state income tax so that’s where the trouble is coming from.

    So where do you go from here? First-look at the old tax papers. (If you even still have them.) Back in 1999 and 2000, you could e-file your federal return but many states still were mailed in. I wouldn’t be surprised if the tax returns were done and sitting in a folder someplace. I used to deal with that a lot before the efile became more streamlined. (I still deal with it for some types of returns.)

    I’m guessing you won’t find anything, (but that’s always the first thing to look for) but if you don’t have a return already done, then the next step is to actually prepare a tax return for those years. Now–it sounds to me like the state already prepared a return for your husband–but if they’re anything like the IRS, then it’s wrong. That’s why you want to have a fresh one prepared.

    Here’s the other important thing to look out for. Can you find a copy of your husband’s old w2s? $9000 is a lot of money to owe on a state tax return (even if it’s for two years.) My guess–and I’m just guessing of course, is that the state isn’t taking into account the money withheld from your husband’s wages that would be on the W2. And–if you could come up with the w2s–that would probably go a long way towards solving the debt problem. (Ahem–I have to say I’m guessing, because I am–but that’s generally the case here in Missouri–as in almost always so this is really worth checking out.)

    For example: let’s say your huband had $4000 a year withheld from his income for North Carolina state income tax–well then the debt would only be $1000. Or maybe he even overpaid–I’ve seen that happen. You wouldn’t get the refund though, but at least it would get them off of your backs.

    One thing about your IRS transcript information–it does not show your North Carolina withholding. That’s a key piece of information that you’re going to need. So you want to start searching for those W2s. Good luck.

  369. Lisa Jordan on Fri, 17th Aug 2012 12:43 pm
  370. I’m a full-time Texas resident that works 100% remotely as an online educator. The university that I work for, and the students I teach, are based in Missouri. Which state should withhold taxes from my paycheck?

    Also, I’m subcontracted to the university. (same tax scenario as above stands). My employer says I am responsible for my own PORTION of Social Security and applicable tax witholdings, although my employer will deduct these fees automatically. However, my contract mentions they will not be PAYING these taxes, merely withholding/deducting them from my paycheck and then matching the Social Security. What does this mean?! For example, am I a 1099 or W-2 employee now? Must I file my own employment taxes?

    I’m so confused! I appreciate your help and clarity.

    thank you!

  371. Admin Roberg on Sat, 18th Aug 2012 3:30 pm
  372. Hi Lisa,
    You got me! I’m confused too!
    They say that they’re going to withhold your social security but they won’t pay it? People go to jail for that–so I’m thinking it’s a communication thing here.

    It sounds to me like they mean that they will take the social security and medicare payments from your pay and then they will be matching it–which means they are paying the employer’s share, and they sure as heck better send the payments into the IRS or the can expect a revenue agent to be knocking on their door.

    It sounds to me like you will be a W2 employee. (And that somebody was listening to too many lawyers when they came up with the “we don’t pay your social security” line.)

    I’d still ask, “Will I be receiving a W2 or a 1099?” Just to make sure. If they say 1099 and they’re withholding social security–then I think you should find a different school to work for. (Because that’s totally nuts.)

    Now, for the other thing–you live and work in Texas, therefore you are subject to Texas tax rules–and Texas has no state income tax. You should not be paying Missouri state income tax (even though we’d love to see your money up here.)

    I’m saying you’re a W2 employee. For every $100 you make, the school will deduct $5.74 for social security and medicare. So your check will be $94.26 instead of $100. They will probably also withhold federal taxes as well so your check will actually be a little less. That’s how I interpret it anyway.

  373. Lisa Jordan on Sun, 19th Aug 2012 2:57 pm
  374. Thank you for answering that so thoroughly. Now THAT makes sense! One last piece…..

    Is there a tax rule, code or number that I can refer my employer to in order to substantiate this information?

    thanks again,

  375. Admin Roberg on Mon, 20th Aug 2012 9:23 am
  376. Hi Lisa,
    Tax rules, let’s see. The official rule book on payroll issues is called Publication 15, here’s a link to that: http://www.irs.gov/pub/irs-pdf/p15.pdf. It’s also called Circular E (don’t ask me how they come up with the names, I’m clueless there.)

    Two other things that will help you out is what paperwork they ask you to sign. If they tell you to fill out a W4–then you’re an employee. Here’s a link to one of those: http://www.irs.gov/pub/irs-pdf/fw4.pdf
    If they tell you to fill out a W9, then you’ll be contract labor. Here’s a link to one of those: http://www.irs.gov/pub/irs-pdf/fw9.pdf

    Now, the Pub 15 is 59 pages long, but a lot of that is the income tax withholding tables. But that’s going to have the rules about income tax withholding and things like that.

  377. Zoe on Thu, 23rd Aug 2012 5:26 pm
  378. I am a tour director for a California company and I work all over the world. I live in Illinois when I am not working. My paychek comes from CA and no state tax is withheld. I assume that I should file an IL return only (for the state). Is that correct?.

  379. Admin Roberg on Fri, 24th Aug 2012 8:56 am
  380. Hi Zoe,
    You live in Illinois, but your company is based in California. But they send you for travel all over the world. (How horrible it must be to be you! Oops, sorry about the sarcasm. I’m just a little jealous. I’ll get over it.)
    Okay, my gut reaction is that you will only pay Illinois income tax. And you should probably start withholding for Illinois or make estimated tax payments to the Illinois Department of Revenue.
    That said, do you ever work in California? If there are times that you have to go work at the main office in California–then you may be required to file a California non-resident return. But from what I gather, that’s not the case with you at all. Quite frankly, if you were doing any work in California, your employer would be withholding California income tax. (Flying in for a few days for a meeting or seminar doesn’t really count. I mean going to California and staying awhile to actually work there when I’m talking about taxes.)

  381. Zoe Wagoner on Sun, 2nd Sep 2012 9:39 am
  382. Thank you so much for your help!!! I really appreciate it!

  383. Patti L on Wed, 5th Sep 2012 8:52 am
  384. I just moved from TX to WV. I am working from home and my company is not taking WV income tax out of my check. I was told it was because I am technically still working in TX as I remote in to Plano everyday. I just want to confirm this is correct so I am not hit with a huge tax bill at the end of the year.

    Thanks for your help.

  385. Admin Roberg on Thu, 6th Sep 2012 9:44 pm
  386. Hi Patti,
    Excellent question. As far as you employer is concerned–you do work in Texas–and that’s all fine and dandy for him. But you live in West Virginia and you will be taxed by West Virginia on that income.
    Let’s say your boss was in Missouri instead of Texas. Then he’d be withholding Missouri income tax. You would file as a West Virginia resident and a Missouri non-resident. WV would give you a credit for the taxes that you paid to Missouri.
    But your boss isn’t in Missouri, he’s in Texas. There’s no state tax in Texas so you won’t get that credit–so you’re have to pay tax to WV on all of your income that you earned in Texas.
    What you’ll need to do is make estimated tax payments to WV for the income that you’re earning so that you avoid getting hit with a huge tax bill in April.

  387. Lola on Mon, 10th Sep 2012 5:34 pm
  388. Just curious! If my husband and I are seperated and I live in the house we own and he lives somewhere he shouldn’t be, does he have to put his new address on his income tax if we file jointly? Or even married filing separately, what address is he liable to put down?

  389. Admin Roberg on Mon, 10th Sep 2012 9:51 pm
  390. Hi Lola,
    That’s a good question. Now what you’re “supposed” to do and what people “really” do aren’t always the same thing. You’re supposed to put your real address on your tax return. If you’re married and filing jointly, you’re both supposed to sign the return and you would see what address is on the return. But–I know people often sign 8879 forms (the efile form) and don’t ever look at the real return. Some spouses never get a chance to see them, and some naughty spouses even forge signatures.
    So–where would that leave you? If you filed jointly, but didn’t see the return, you could request a copy of the transcript from the IRS. You’d have to explain that you needed it sent to your new address (since you don’t know what’s on the return) but you would have a legal right to see it. (It will be a hassle, FYI because they’re going to want to send it to the address on the return, but you’ll work that out–just a bit of a hassle.)
    Now, if he files separately, you won’t be able to find out his new address because the IRS won’t give it out.

  391. Lynn on Tue, 11th Sep 2012 12:02 pm
  392. I got married in July and lived in PA until August of this year when we moved to NC. My husband is a medical student and has always used his parents home address in PA as his permanent address. We know that we will only be in NC for one year (due to the way his schooling works), so we weren’t planning on changing our residency over and were just going to keep our PA drivers licenses and addresses (I still own a home in PA that we rent out). Is this going to cause problems on our tax returns if we don’t change everything over or can we simply file a two state tax return? Thank you!

  393. Admin Roberg on Tue, 11th Sep 2012 1:10 pm
  394. Hi Lynn,
    Congratulations on your wedding! Now for the tax stuff. No matter what you do about drivers licenses and stuff like that, you will have to file two stae tax returns. I’m guessing that you will be better off filing a PA residents and NC non-residents. If I were preparing the returns, I’d run it two ways to compare (also as part year residents of both states) but I don’t think you’ll save much money, if any, that way.
    You know that you’re in NC temporarily so I wouldn’t change everything over. I would just make sure that you pay NC the state tax that they are entitled to, that’s all.
    Be sure to check out my tax tips for newlyweds also: http://robergtaxsolutions.com/2011/01/tax-tips-for-newlyweds/

  395. Jeff on Sun, 30th Sep 2012 7:40 am
  396. I moved in Feb of 2012 from Texas to Kansas. I’m still technically based out of corporate office in Texas but travel around the world & in several states doing oilfield work. None of my services however take place in Kansas….just have my home address there – I’m gone from home approx 180 days per year. Am I a resident/non-resident? Do I even need to file in Kansas?

  397. Priya on Sun, 30th Sep 2012 5:26 pm
  398. Hi

    My husband is taking up a job that is based in Georgia, but we live in Texas, he will be working from Texas, and will not be traveling to Georgia, Do we have to pay Georgia State taxes.

  399. priya on Mon, 1st Oct 2012 8:04 am
  400. I really appreciate your reply

  401. Admin Roberg on Mon, 1st Oct 2012 9:15 am
  402. Hi Jeff,
    The bottom line is that you live in Kansas. You talk about moving to Kansas and that your home address is Kansas–bottom line, you are a Kansas resident and therefore you should be filing a Kasas tax return and pay Kansas income tax. You are a Kansas resident.
    If your company withholds income tax for any other state they have you working in, then you would be a non-resident of that state. But Kansas gets to tax all of your income.

  403. Admin Roberg on Mon, 1st Oct 2012 9:18 am
  404. Hi Priya,
    Your situation is almost the opposite of Jeffs. You live in Texas and work in Texas so you should not be paying Georgia taxes. If Texas had a state income tax, you would pay Texas, but they don’t have one so you’re only paying federal.

  405. Joni on Wed, 3rd Oct 2012 6:21 pm
  406. How is unemployment treated. I have been a resident of WA state for over 10 years, I had to return to WV in Nov of last year and was here for two months due to deaths in the family and was drawing unemployment. I Paid 10 % withholding on WA states. I then took a three month job in MN and am again drawing unemployment from MN however and no taxes being withheld. At what point do I change my residency from WA state to WV? Once I obtain a job and obtain a drivers license and become a resident of WV then> Not sure how to file taxes for 2012?

  407. Admin Roberg on Wed, 3rd Oct 2012 10:14 pm
  408. Hi Joni,
    I’m sorry about the deaths in your family.
    So how do we file your taxes?
    I think it’s in your best interests to be a Washington State resident for as much as possible. Are you permanently relocating to West Virginia? Or are you still planning on returning to Washington. If you’re moving back to Washington you might be able to just keep your Washington residency–that would be good taxwise. If you’re definitely relocating to WV, then you’ll want to do a part year return for WV.
    Technically, you could be doing part year returns for Washington, Minnesota, and West Virginia. But if you’re planning on moving back to Washington, then you would be a Washington resident and you would file non-resident returns for Minnesota and West Virginia.
    I know I kind of gavev you a non-answer, but mostly it will depend on what you’re planning on doing. For what it’s worth, I doubt that it would make much difference in how much you pay whether you file as a Washington resident and do the other states as non-residents or if you do all the states as part year residents.

  409. Joni on Thu, 4th Oct 2012 2:22 am
  410. Thanks for your response. I have been in WV all year except for 16 wks I worked as temp employee in MN.. However drew unemployment from WA state for 20 weeks and now from MN for 4 wks so far.. I was trying to return to wA state, but do not think I will be able to.. and am seeking employment in WV. I did pay state tax to MN and federal off of WA state.. So I will or may owe Federal for MN and state?? 10% plus 5.35 % . So in WV. where I have been, I believe they tax you based on income while here. so I assume I would file in WV for part-year resident and owe about $1042 based on 2011 rates, then apply for non-resident of MN and possibly get my $640 back?? and then owe federal on my income after deductions. ? I will have to remain here til estate is settled, etc and have a disabled son who lives here as well. So standard deduction for 2012 is $8700 and exemptions are $3800.. and I will have business expense and home rental expenses.. so does that mean that the first $16, 300 is not taxed, business expenses, lap top depreciate over 3 years, and still have to do my mileage, and interest on mtg if it still exists! Anyhow, I Like your site. Next time, would change my name as an identifier and have a user name..

  411. Tristin on Thu, 4th Oct 2012 10:40 am
  412. My husband works in CA and pays CA state taxes. However, he is not a resident of CA. His residency is TX which does not have a state tax. Will we be able to get the money he paid in CA state taxes back on our tax return? How does this work since we live in TX (that has no state tax)?

  413. Admin Roberg on Fri, 5th Oct 2012 7:59 pm
  414. Hi Joni,
    You’ll pay federal taxes on all of your income no matter where it was earned. You want to be a part year resident of Washington and a part year resident of West Virginia. You will file as a non-resident of Minnesota. The Minnesota income will be attibuted to wither Washington or West Virginia, depending upon where your Minnesota visit falls. If it’s right inbetween the two residencies, I’d attribute it to Washington.

  415. Admin Roberg on Fri, 5th Oct 2012 8:05 pm
  416. Hi Tristin,
    You will file as a non-resident of California. California will collect tax on the income that he earned in California. You won’t get that money back unless you overpaid. Sorry.

  417. luicho on Sat, 6th Oct 2012 9:23 pm
  418. Hi,

    I am currently in Illinois but plan to move to Mass end of year. I’ve been collecting unemployment since april 2012 and i am wondering if its better if I file while here as resident of IL or move and file over there. I mean, will i get more back if i live in MA as of jan 1st?

    Thanks

  419. Admin Roberg on Sat, 6th Oct 2012 9:44 pm
  420. Hi Luicho,
    My best advice here is to move when it makes sense for you to move–not to think about taxes–do what’s best for your life. Seriously.
    As far as taxes are concerned, you’ll pay taxes on your unemployment no matter where you live. Let’s say you move in November and keep collecting Illinois unemployment while looking for a job in Massachusetts. You would file a part-year Illinois return and a part year Massachusetts return. You will pay tax on the unemployment that you received while in Illinois to Illinois, and you will pay tax on the unemployment that you received while in Massachusetts to Massachusetts.
    Your federal taxes won’t change.

  421. Matt on Sun, 7th Oct 2012 10:01 pm
  422. Hi, I recently started working in Texas. My wife and I have a home in az where she lives and works. I go home on some weekends but am in texas in hotels most of the time and also have a residence with my family in texas.

    Should I file separately with my texas address or jointly with our az address.

  423. Admin Roberg on Mon, 8th Oct 2012 11:37 am
  424. Hi Matt,
    My gut reaction is to file jointly in Arizona, but that might not be the best. The best way to figure it out is this: set up your taxes as married filing jointly with you living in Texas and your wife living in Arizona. Check how that comes out. Then do the switch to married filing separately. Most tax software will compute that for you without you having to prepare two separate returns..
    I’m not familiar with the Arizona tax return, I don’t know if married couples are allowed to claim they live in separate states on their tax return. Here in Missouri, our returns allow for that. If Arizona allows it, then that’s going to be your best bet. If Arizona requires you to be an Arizona resident, then they’ll tax all of your Texas income so in that case the filing separately could make more sense.
    But there are so many other factors that go into the filing separate issue I can’t just make the call over the internet. Fortunately for you, it’s not hard to determine once you’ve done the actual return.

  425. Anthony Messina on Wed, 10th Oct 2012 5:24 pm
  426. HI,
    I live in Florida but worked in New York State from 2006 to 2011 and was laid off in Sept of 2011. Ive been collecting NYS unemployment since that date. I am married and my wife works as a teachers asst. in Fla. We have two children. My question is other than the NYS unemployment that I received do I have to pay taxes to NYS on my wifes income and any bank interest or capital gains earned during this period where I was not working in NYS but collecting unemployment
    Thank You

  427. Admin Roberg on Sat, 13th Oct 2012 6:46 pm
  428. Hi Anthony,
    You will file a part year tax return for New York. So you won’t pay tax on any income you earned in Florida to the state of New York. You will still be paying tax to New York on any income you earned while you were there.

  429. Andi on Mon, 15th Oct 2012 1:32 pm
  430. i live in wa state (where there’s no SIT) but the company i work for has regional offices all throughout the U.S.
    for part of 2012 i worked for our MA state office, and just started working for our NC office a few weeks ago. from my understanding MA SIT is a flat 5.3% and NC SIT can vary from 6.0-7.75%…..my question is: would i be safe claiming 1 on my W4 now that I’m getting more SIT taken out of my checks? I used to always claim 0 to ensure I received a larger return/didn’t owe anything…but now because I’m getting so much more taken out in state taxes, i think i need to adjust my exemptions to make up for that. just really don’t want to be stuck owing anything and would still like to get somewhat of a return. how much of a difference is it really to claim 1 vs. 0?

  431. Admin Roberg on Tue, 16th Oct 2012 12:29 pm
  432. Hi Andi,
    Good question. The answer is, of course, it depends. Sorry to do that to you. But, I do see where you’re coming from.
    First, for most people, if you are single and claiming 1 exemption–you should come out okay on your tax return. Don’t expect a big refund, but you should come out close to even. If you work multiple jobs–do the higher withholding because it messes things up, but one job it usually works okay.
    What is the difference between claiming 1 and 0 exemptions? Well, it depends upon how much money you make. For example, if you made $20,000 the difference between 0 and 1 exemption would be $555 per year. But if you made $50,000 the difference would be $925 per year. The higher your income, the bigger the difference will be.
    To get a really good reading on where you stand with your federal taxes, check out the IRS withholding calculator. Here’s the link: http://www.irs.gov/Individuals/IRS-Withholding-Calculator

    In fairness, the first time I looked at it I thought, “Oh, my gosh, who’d want to do that?” But–it’s really good at figuring out where you stand taxwise. Read the directions and follow them exactly.

    Quick and dirty gut reaction–claiming 1 is probably fine if you have just one job and don’t have a lot of other income–just don’t expect a big refund. But for a good accurate reading, go check out that calculator.

  433. justin ahlquist on Tue, 16th Oct 2012 3:54 pm
  434. I moved from california to utah in January for work. I am a reservist and the military did not change my state of resisdency and withheld california income taxes. How do I get that money back to pay income taxes on it in utah or do I just split pay utah/california even thou I was a resident of both on paper for 4-6 months until the air force could figure out how to correct their issues.

  435. Admin Roberg on Wed, 17th Oct 2012 8:12 pm
  436. Hi Justin,
    As a California resident, your military income in Utah is not taxable to Utah. Generally, your residency is considered to be the state you lived in before you joined the service. Now, since you are a reservist–and you went to Utah for a job–is it safe to say that you are now a Utah resident? Because that changes everything.
    Being a resident, then your military pay is taxable.

    Bottom line–your taxes will be kind of interesting this year. So, if I understand correctly, your main job is something else and you’re a traditional reservist doing the one weekend a month? So you really are now a Utah resident, is that correct?
    If so, I would file your tax return as a Utah resident (you moved there in January so that’s basically the whole year) and a California non-resident. If your reserve work was done in California–then it’s California income. If you transferred to a Utah base, then it’s Utah income. If you had no California income, you’ll be filing the non-resident return to claim a refund for the taxes that were withheld in California. If you owed California taxes, you will receive a credit towards your Utah tax for the tax that was paid to California. (By that I mean the actual tax on the tax return, not the amount that was withheld.)

    It will all balance out eventually.

  437. Carol on Thu, 18th Oct 2012 4:33 am
  438. I mined from Missouri to Florida in dec 2011 and became official FL resident. I have rental properties in MO that have income between 5000-15000 a year. Since fl has no income tax I’ll pew nothing to Florida. Do I have to file a nonresident MO tax form? That is all the income I make but my husband makes 35 percent tax bracket money but all of it was made in Florida.

  439. Admin Roberg on Thu, 18th Oct 2012 3:08 pm
  440. Hi Carol,
    What you will do is file a Missouri non-resident return. As a Florida resident, the only income taxable to you in Missouri will be your rental income. Your husband’s income will not be taxed.

  441. Melanie on Tue, 23rd Oct 2012 12:34 pm
  442. Im live in Wa state….plannin to move to Puerto Rico in December. Can i still file my taxes if im livin in PUerto Rico???

  443. Admin Roberg on Wed, 24th Oct 2012 9:29 pm
  444. Hi Melanie,
    Can I come visit you in Puerto Rico sometime around February to help you file your taxes? (I had to ask.)
    So for 2011, you’re still filing a regular US tax return. For 2012, Puerto Rico actually has it’s own form–it’s still a US tax return but it’s a little different. It will be well worth your money to get some help from a pro, at least the first year. (I took a class in how to do the Puerto Rico form several years ago. Not many calls for Puerto Rican tax returns here in St. Louis, I’ve never actually done one.)
    Here’s the link to the Puerto Rico tax return website: http://www.hacienda.gobierno.pr/planillas_y_formularios/individuos.html
    You can get the forms and directions in Spanish or English.

  445. Adam on Sun, 28th Oct 2012 7:01 am
  446. Hi,

    I apologize in advance if my question is more or less answered above.

    Here is my question:

    I live in Alabama and work as a consultant based out of Texas. All of my income is generated in Texas (based out of our Houston office) via my travels to multiple states and countries.

    Being that I am a resident of Alabama and earn all of my income in a non-tax state, where do I stand with paying Alabama income taxes? (Note it was a lot easier when I lived in Houston for more than six months in 2011).

    Thanks,

    Adam

  447. Admin Roberg on Wed, 31st Oct 2012 10:33 am
  448. Hi Adam,
    you’re not going to like my answer but–all of your income is taxable to Alabama. It’s where you live. Sorry.

  449. Adam Ritch on Thu, 1st Nov 2012 9:56 am
  450. Actually, I love your answer as it s clear and concise. I knew when I lived in Texas >6 months, I was okay as that was my permanent residence then. Good news is that Alabama’s income taxes aren’t high and I pay what I owe.

    Thanks a million!

  451. Brenda on Wed, 7th Nov 2012 4:33 pm
  452. My husband and I live in Texas. We do not pay state taxes here. This last month he has was offered and accepted a job in Louisiana, which is a state that collects state taxes. He stays with a friend during the week and travels back to Texas every weekend. Do we have to pay Louisiana taxes, and if so how do we file them?

  453. Admin Roberg on Wed, 7th Nov 2012 8:44 pm
  454. Hi Brenda,
    You’ll file a “non-resident” tax return for Louisiana. You will only pay taxes on the income your husband earns in Louisiana to Louisiana. That’s it.

  455. michele on Fri, 9th Nov 2012 10:25 am
  456. My husband and I are both IL residents. He just got out of the Marine Corps and I’m still in the Army Reserves. Now that he is out, if he gets a job in NC how can we claim IL for state tax purposes and make estimated payments to IL without paying NC state taxes each pay period? I prefer to just make estimated payments to IL like I have been doing. ( because I was protected under the Military Spouses Relief Act) but now that he is out of the USMC but I’m still in the reserves I don’t really know how to approach our situation.Do I need to file as a non resident of NC when I file taxes? It’s just so difficult when it comes to filing state taxes. Thank you.

  457. Admin Roberg on Sat, 10th Nov 2012 11:15 pm
  458. Hi Michele,
    You would be a non-resident of North Carolina. Your husband would file a part year resident of Illinois and a part year resident of NC.
    Now that he’s out of the military, he won’t have a “home state” like before. When he moves to NC he will be an NC resident. And you won’t have the Military Spouses Relief Act.
    Civilian income that you earn in North Carolina will be subject to income tax as well.

  459. John on Mon, 12th Nov 2012 3:42 pm
  460. My wife worked in NYC for 6 months and then the company went under and she was laid off. We moved to Virginia right after (so 6 months in NY, 6 in VA) and she received unemployment from NY and no VA income. We filed taxes for NY but not VA, but now we are getting a letter from VA about not having filed that year. Should we have filed in VA as well even though she received income from NY? Do you think this will be easily resolved? Thanks for your help!

  461. Admin Roberg on Mon, 12th Nov 2012 4:15 pm
  462. Hi John,
    What happened is that you filed your federal income tax return and it had a Virginia address on it, so Virginia wants it’s share. Technically, you should have filed a Virgina return and claimed a credit for taxes paid to New York.
    But the truth of the matter is–you won’t owe Virginia taxes anyway, and the combination of half year residency and credit to another state will give even me a headache and I do this for a living.
    Here in Missouri, we can just write on the back of the notice–income tax was not due to the state for this tax year as we were not residents. If Virginia will let you do that, that’s going to be the easiest for everyone. You are doing VA a favor doing that–they will get no money if you file the VA return so you’re making things easier for them too.
    Now if you actually had income in Virginia–then you’ll have to file a Virginia return and pay the tax. But if I understand you correctly, that’s not the case.

  463. John on Mon, 12th Nov 2012 4:24 pm
  464. Thanks for your quick reply!

    You are correct: no VA income that year. I think there is an option on the back of the letter for what you said, so we’ll send it back marked as such… we were thinking we may have to call to sort this out but we’ll just go with the letter and see what happens.

    Thanks again!

  465. nina prado on Wed, 14th Nov 2012 4:25 pm
  466. I have recently retired and have no income for this year except for my husband’s ss monthly. I lived in NYC for 2 months, Mass for 6 months and now NM for the remaining 3 months. I sold an appartment in NYC which is the only income either one of us has “ëarned” this year. Which state to I file under??

  467. Michael Smiley on Thu, 15th Nov 2012 9:01 pm
  468. Work full time in New York State (am NY resident). Due to Hurricane Sandy have been relocated to temporary office in New Jersey. Does firm need to withhold for New Jersey? If they do not due I need to file NJ non resident return? Are there emergency measures in place in this situation.

  469. Natasha on Fri, 16th Nov 2012 11:13 am
  470. I moved from California to GA in May 2010 for a new job, and got married in September of that year. My husband also moved from CA to GA, however he continued to work “remotely” for his CA based employer. In addition, we both own houses in CA which became rental properties in 2010 after we moved. GA state just sent us a letter informing us that we owe them a substantial amount of money. When I looked into this, I found out that while our CA-based CPA filed our CA income state tax returns as “Part-Year” residents, he filed our GA income state tax returns as “Full-Year” residents. I called the GA state department of revenue and was told that since our taxes were filed as “Full-Year” residents, we can now file an amended tax return with the state of GA for 2010 tax year. Would you recommend that the original CPA should file the amended 2010 returns for us, or should I should look for a local CPA here in GA to do this for us. Also, the local GA department of revenue office said that they have CPAs available for us in their office who could do this free of charge –> Is it a generally bad idea to consider using their services?

  471. Admin Roberg on Sat, 17th Nov 2012 1:56 pm
  472. Hi Nina,
    Good question. Technically you would file part year residents for all three states, but since there’s no income–you might not have to file at all.
    The New York Apartment–I assume was your main residence. If that’s the case, and you’re married, you can have a $500,000 gain on that without having to pay taxes. (You might not even be required to file if your realtor did the paperwork the right way.)
    But let’s say you do have to file–definitely file a part year return for New York. You might also want to file a part year for NM also –not that I expect you to pay tax, it’s more a way of telling New Mexico that you’re not forgetting them. If your only income is social security–you won’t owe anything, but your federal tax return will have New Mexico as the home address and they will receive a copy of your federal tax return. So New Mexico will be wondering, why didn’t Nina do a New Mexico tax return? And you’d get a little letter from them. Filing the NM return just prevents the letter.

  473. Admin Roberg on Sat, 17th Nov 2012 2:45 pm
  474. Hi Michael,
    Technically, the company should be withholding New Jersey tax. But hey–you all had some major problems and so they might not even have a New Jersey payroll tax identification number yet.
    I would assume that you will file your New York resident return and a New Jersey non-resident return and pay New Jersey taxes if necessary and claim a credit in NY for taxes paid to NJ.
    I checked the NJ department of revenue website to see if they’ve made any provisions for now about situations like yours but didn’t find anything. But–that doesn’t mean they won’t before the year’s out.
    But as it stands right now–expect to file returns for both states.

  475. Admin Roberg on Sat, 17th Nov 2012 2:55 pm
  476. Hi Natasha,
    I don’t have much experience with the Georgia Department of Revenue so I can’t say if their tax preparers are good or bad. That said, I would take the chance and have them do it. If their revised return shows that you owe zero or only a small amount of money–well then I’m guessing that would be about right. If the return they prepare says you owe $10,000 or something big–then I would say,
    “Thank you but I’d like to get a second opinon.” And that’s a perfectly legitimate response. (Because I expect you to not really owe Georgia anything once your return is prepared correctly.)
    So–Your old CPA shouldn’t have made that mistake–but mistakes happen. He should agree to fix it for you for free since the mistake was his.
    If you don’t get any cooperation from him, or if you don’t trust him, find an enrolled agent in Georgia. Here’s a link to find someone: https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

    Bottom line–I’d give the Georgia Department of Revenue a try first. Free is a good price point in my book.

  477. Melanie on Sun, 18th Nov 2012 10:02 pm
  478. I am a student and did two internships while living in Texas during 2011 (Jan-June, August-Dec), but am a permanent resident in Ohio as that’s where I go to school. I filed federal taxes but didn’t file any states taxes in Ohio because I didn’t make any money when I lived here during 2011. Apparently I got a letter at home from Ohio saying I need to file a return because that’s listed as my permanent address. Do I need to complete an Ohio tax return and somehow tell them I was a partial resident? Will they tax the income I made in Texas?

  479. Alton E. Bradshaw on Mon, 19th Nov 2012 6:32 pm
  480. I live in Massachusetts and have just accepted a position in Idaho. I am not required to move for this new position; and therefore, I am staying at my residence in Massachusetts and now flying each week to work in Idaho. I believe I pay Idaho state taxes for the remaining two months of calendar year 2012, and claim a tax credit with Massachusetts for these two months of income earned while working in Idaho? The Idaho state tax rate maximum is 7.4% for married and the Massachusetts state tax rate is 5.3%. Next year, I will work the entire year out of Idaho and live in Massachusetts. Will Massachusetts give me a tax credit for my entire year of income earned in Idaho at the higher 7.4% tax rate for calendar year 2013; so that I essentially pay the 7.4% Idaho state income tax rate for 2013, and not have to pay the additional Massachusetts state tax rate of 5.3%?

  481. Admin Roberg on Mon, 19th Nov 2012 7:07 pm
  482. Hi Alton,
    That’s basically right, but just a heads up here–even though Idaho has a higher tax rate than Massachusetts, Idaho’s taxes might not be higher. Weird right?

    I just tossed a random tax return that I was working on into Massachusetts–the tax bill was $4014 (I didn’t use any withholding). But–if you had to pay the health care penalty, then it would be over $6000 (because I used a married couple.

    Now the same return for Idaho had a tax bill of $4248. Why were the tax bills so close when the rates are so far apart? Because Idaho allows you to itemize your deductions and Massachusetts is pretty standard.

    Basically, if you just withhold for Idaho and take a credit for Idaho on your Massachusetts taxes, you should be okay–but you might want to play around with that with your own numbers after you get a better handle on it.

    I was surprised that the numbers came out so close. Like I said, it was a totally random tax return, I don’t know what your situation is. If you have lots of deductions, it’s possible that you could still owe Massachusetts. Do a projection for 2013 after you do your 2012 taxes, you’ll have a much clearer picture.

  483. Admin Roberg on Mon, 19th Nov 2012 7:18 pm
  484. Hi Melanie,
    I’m confused. You are a permanent resident of Ohio because that’s where you go to school? Then why were you working in Texas from Jan-Jun and Aug-December? I think you go to school in Texas right? And you are from Ohio, right?

    If that is the case, then you are a non-resident of Texas and you must pay Ohio income tax on your internship money. You are not a part year resident of Texas.

    Now, if you are going to school in Ohio now, and were a permanent resident of Texas–then you’d just inform Ohio that you were not a resident of Ohio when that work was performed.

  485. Lesley Westbrook on Tue, 20th Nov 2012 2:02 pm
  486. Hello,

    My husband and I are permanent residents of Texas. The company my husband works for sent him to Oklahoma this year to work on a project there. State taxes for Oklahoma were deducted, as shown on his pay statement. I have never worked with taxes paid to another state, and I certainly don’t want to anything wrong concerning filling out the tax forms. I would appreciate your guidance as I am trully apprehensive about this.

    I have been trying to locate the 2012 forms for Oklahoma. So far all I have ever come across are those for 2011. I couldn’ even print those out as they would not download properly. I wanted to get some idea of what I am facing. I did call the tax place in Oklahoma. They had promised to mail the forms, but I’m afraid that never came to pass. I would be most grateful for whatever assistance you may have to share.

    Thank you for your time.

  487. Admin Roberg on Tue, 20th Nov 2012 4:04 pm
  488. Here’s a heads up to anyone working in New York temporarily because of Hurricane Sandy. The New York Department of Revenue has a link about temporary businesses: http://www.tax.ny.gov/bus/multi/additional_sandy_information.htm#policy

  489. Admin Roberg on Wed, 21st Nov 2012 10:26 am
  490. Hi Lesley,
    Don’t panic. It’s perfectly normal for the tax forms to not be ready yet. My website tax prep is down right now too. The IRS and the states are in the process of getting things ready for next year.
    You’ll be preparing a form 511 non resident return for Oklahoma. The 2011 form will be pretty close to whatever comes out for 2012.
    Now here’s the easy part. Do your taxes on my website here and click on the button to do the Oklahoma return and the software will do the work for you. How easy is that? You won’t be able to do it until January, but it’s pretty easy.
    If your income is low enough, you might qualify for free filing in Oklahoma. It’s closed right now, but later in January you can get to it. Here’s the link: http://www.tax.ok.gov/itfile11.html

  491. Lesley Westbrook on Wed, 21st Nov 2012 5:11 pm
  492. I certainly appreciate this information. When the time comes, I’ll follow your lead, get back up on that horse, and hopefully find my way though the maze. Thank you so much.

  493. Admin Roberg on Fri, 23rd Nov 2012 4:40 pm
  494. @Lesley,
    You’ll be great. If you’re having trouble, you can always write back.

  495. Karena on Sat, 24th Nov 2012 8:05 pm
  496. My husband is active military and his home state is TX. We receive rental income for property (land) he owns in KS and we also have a rental property (house) in NE… usually a loss. Is he required to file state taxes with KS and NE for those incomes? Also, we are currently stationed in CA, are we required to file in CA too? This is all VERY confusing.

  497. Admin Roberg on Sun, 25th Nov 2012 1:30 pm
  498. Hi Karena,
    You’re making my head spin! Let me see if I can figure this out. TX resident–okay that was easy, no tax there.

    Rental properties in Kansa and Nebraska–okay–you’ll need to file non-resident returns in those states. You probably won’t owe anything, but just need to file to prove you don’t owe.

    California–definitely have to file. California will tax your military income while your husband is stationed there.

    I advise having your taxes prepred by a California licensed tax preparer. California tax rules are a bit different from the rest of the country, but they are a little ahead of the game on making their tax professionals get trained and licensed. It will be well worth the investment having your taxes done correctly. Here’s a link to find an EA in your area: https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

  499. A.Yousuf on Tue, 27th Nov 2012 10:02 am
  500. I came to US on H1B visa in July(7/11/2012). My company is located in MA, i worked at my company’s office till 8th August before leaving to work at a client in NJ. I then called my family from back home on H4(dependent) visas which includes my wife and one year old kid. They joined me on 8th Sep.

    How should i file my taxes?

  501. Carolyn on Wed, 28th Nov 2012 2:20 pm
  502. I am a payroll specialist and we are trying to figure out what tax we need to withhold from an employee. The employee has a permanent residence in SC but works in MD and stays in a hotel in VA for 4-5 days a week. (he does not want to relocate up to MD so the company pays for the hotel and flights) We are currently withholding SC taxes since it is his permanent residence state and he does not technically live anywhere else. Are we doing this correctly? Or do we need to withhold MD taxes in addition to SC?

  503. Kelly on Thu, 29th Nov 2012 12:45 pm
  504. I live in CA, but my job is in VA b/c I work remotely everyday. Do i pay CA taxes or VA? If I request to be exempt from VA tax withholding then how do I know how much to pay taxes to CA?

  505. Admin Roberg on Thu, 29th Nov 2012 8:26 pm
  506. Hi A. Yousuf,
    First, you were not in the United States for over 180 days so you will be able to file as a non-resident, that would be the 1040NR. If you had income in your country before you came to the US, filing the NR return is what you want to do. If you were to file as a US resident, the US taxes your worldwide income.
    Now, what about the states? For 2012, you may file as a non-resident of Massachusetts and a non-resident of NJ. You will want to check to see if you have any tax treaties for the country you are from. Most treaties don’t protect income for people on an H1 visa, but it’s always good to check. Here’s the IRS website on treaties: http://www.irs.gov/Businesses/International-Businesses/United-States-Income-Tax-Treaties—A-to-Z

    It’s a good idea to get some professional help when filing your first US tax return. Our tax system is rather tricky.

  507. Admin Roberg on Sat, 1st Dec 2012 5:11 pm
  508. Hi Carolyn,
    Your employee will be filing a South Carolina resident return and a Maryland non-resident return. Most employers withhold taxes for the state that the employee works in. Only best, most wonderful, kind and generous payroll people even think about withholding for both states. So if I could give out gold stars or something like that on this web site–you’d get one.
    So here’s what I suggest. 2012 is almost over, starting in 2013–you should be withholding for Maryland for certain. After your employee does his taxes, he’ll have a better clue as to how his South Carolina taxes compare to his Maryland to determine if he should also be withholding for South Carolina. (He’ll get a credit in SC for what he has to pay to Maryland.)
    And thanks again for being so considerate of your employees.

  509. Admin Roberg on Sat, 1st Dec 2012 5:17 pm
  510. Hi Kelly,
    You will pay California taxes. You will not be paying Virginia taxes. You are working for a Virginia company, but you’re not setting foot in Virginia.
    If your company can’t withhold for California, you should be paying California estimated taxes.

    Here’s a link to the California Department of Revenue website and their tax calculator. It’s for 2011, but it will give you a good idea. https://www.ftb.ca.gov/online/Tax_Calculator/?WT.mc_id=HP_Popular_TaxCalcTablesRates

  511. Sharyn on Mon, 10th Dec 2012 7:43 am
  512. I moved to Florida from Maryland in January. I was working from home as an employee (not a 1099 or contractor) for a company in Maryland and they did not take any state tax out. I am now working for another company. Same situation…I am a resident of Florida but the company is in Maryland. I started to fill out the MD W2, but then they said I didn’t have to since no state tax would be coming out. Now they are trying to figure out what to do with me since something was “triggered” and they don’t know how to handle unemployment and other state issues. Should I just go 1099 or is there another way so I don’t have to pay a big tax bill quarterly or at the end of the year?

  513. Admin Roberg on Mon, 10th Dec 2012 9:08 am
  514. Hi Sharyn,
    It seems to me that you live and work in Florida. You do not pay Maryland income taxes.
    You employer should be paying your unemployment insurance tax to the state of Florida. (Except Florida calls it a “re-employment tax.” Here’s a link for more information: http://dor.myflorida.com/dor/taxes/reemployment.html

  515. Ed on Tue, 11th Dec 2012 1:32 am
  516. Great site. I live in NJ but on Jan 1st, 2012 will begin working for a company in Nevada. I won’t move to NV until Jan 31st. All of my wages will come from NV (W2) but my wife will have $5,000 that she will earn in NJ. I will move into an apartment in NV on Jan 31st and will register my car, get a driver’s license, register to vote, change banks accounts etc. all to NV. However, we own a home in NJ and my wife is planning to reside in NJ for most 2012. Given the situation above how shall we file and will my NV income be taxed in NJ?

  517. Lisa K. on Tue, 11th Dec 2012 10:50 am
  518. Hi! I live in IL and since 3/19/2012, I have been working in OH Monday thru Thursday (Friday working from home). I will likely continue this schedule until through January/February 2014.

    I’ve worked for consulting firms before who try to alleviate the tax issue by “grounding” you or take a “tax break” for 4 consecutive weeks so that it shows that you did not work in the work state for 12 consecutive months straight.

    My new firm is telling me that there is no obligation for them or myself to ground/tax break as this has never been an issue for them.

    I’m concerned that I owe money. I need some specifics (e.g., tax law, etc.) on which law that I need to point to and need perspective from employer and employee since they’re clueless as to what the issue is.

    Any assistance will help. Thanks!

  519. Lisa K. on Tue, 11th Dec 2012 11:08 am
  520. Please disregard my question. My company is actively looking into it. Thanks!!

  521. Admin Roberg on Tue, 11th Dec 2012 8:03 pm
  522. Hi Ed,
    Thank you. Okay, there’s what should happen and what really will happen (probably anyway.) What should happen is that you should pay state tax to New Jersey for the month of January–but I’m guessing that your Nevada company will just withhold tax from Nevada and you’ll just confuse New Jersey by trying to pay them for January. So–

    You will file as a Nevada Resident and New York non-resident. Your wife will file as a New York resident and Nevada non-resident. It sounds crazy, but you’re certainly not the first couple to do this and you won’t be the last.

    New Jersey will not be taxing your income and Nevada will not be taxing your wife’s income. The tricky part for you will be joint income that you earn–like on a joint bank or stock account. You’ll have to split that to make sense for the states.

    You could probably make your wife a resident of Nevada for tax purposes (it’s not like you’re divorcing, you’re just living apart for job purposes right?) Then you’d still have to file a New Jersey non-resident return for your wife’s wages. I doubt that it would make any difference in the amount of tax you pay, but it might make the paperwork a little easier if you both claim residency in the same state.

  523. Admin Roberg on Tue, 11th Dec 2012 8:23 pm
  524. Hi Lisa,
    I won’t answer your question. Bottom line, they should be withholding Ohio tax anyway because you do pay non-resident taxes. Illinois will give you a credit for the Ohio tax. It should mostly wash anyway.

  525. Scott on Wed, 12th Dec 2012 2:12 pm
  526. Hello. I am a travel Physical Therapist and my permanent address is in new york. In 2012, I have worked in the state of Pennsylvania for a total of 39 weeks. I am planning on working in Pennsylvania in 2013 for around 39-42 weeks. When I file my taxes for 2012 and 2013, does Pennsylvania become my permanent address or can i still use new york? The reason why I ask is because i use new york as my permanent address I am not taxed on my housing stipend when living in Pennsylvania.
    -Scott

  527. Jennifer on Fri, 14th Dec 2012 12:23 am
  528. Hi there! I have a question about my 2012 taxes. My husband, children and I have lived in Florida for 10+ years. In March of 2012, we moved to Colorado. Throughout all of 2012, I have been a stay at home mom collecting unemployment from my previous work at home position where the company was based out of PA. My husband has worked remotely from home as well, and his company is based out of MA. However, we have never filed anything other than normal (Just federal because FL does not do state taxes) in the past, and I am worried we should have been filing MA and PA state taxes all along. Now, with this year, we also have been in 2 different states, so I am a bit confused as where I should start. I would appreciate any help you can give. Thanks so much! :)

  529. Jennifer on Fri, 14th Dec 2012 12:30 am
  530. I have asked others, and they tell me that I am fine and “No, just keep doing what you have been. Your business is in the state you live. You did not travel to MA or PA to earn your wages, so you can file where you are when you receive the money.” Is that true? Or should I start amending old returns and waiting for the penalties and interest? :(

  531. Admin Roberg on Sat, 15th Dec 2012 4:32 pm
  532. Hi Scott,
    a couple of things. First, Pennsylvania does not base it’s tax return on the federal tax return (most states do.) So filing in Pennsylvania may be a little different for you.
    The rule for being a Pennsylvania resident is either–domiciled in Pennsylvania or has a permanent abode in PA and spends a total of 183 or more days in PA.

    So I guess the big issue for you is–do you have a permanent place to live in Pennsylvania? (Because at 39 weeks, I’m thinking you’ve crossed the 183 days marker.)

    So here’s my other thing–companies generally don’t give housing stipends to people in permanent housing–so that might just be your answer.

  533. Admin Roberg on Sat, 15th Dec 2012 4:48 pm
  534. Hi Jennifer,
    you will file a part year Colorado state tax return for the time you lived in Colorado. Because you live and work from home, that’s were you should pay the tax.

    Usually when people tell me what their friends say about tax advice, I cringe. But it sounds like you’ve got smart friends.

  535. Scott on Mon, 17th Dec 2012 9:20 pm
  536. Thanks for the info Admin Roberg.
    If I am renting a house (1 year lease) with two roomates, would this be considered a permanent address in Pennsylvanian if I live in the house for over 1 year?
    -Scott

  537. Admin Roberg on Wed, 19th Dec 2012 9:29 pm
  538. Hi Scott, I think Pennsylvania would count you as a resident.

  539. Robert on Fri, 21st Dec 2012 6:07 pm
  540. I have a Mo address but I work for a company out of NE and I travel a lot to NE and I live mainly in NE 90% of the time. So do I have to pay Mo taxes?

  541. Mark on Fri, 21st Dec 2012 8:04 pm
  542. This is madness. I live in Texas, but travel all around the United States. I’m pretty much in a different city every week. I am NOT self employed, but work for a major company as a consultant. I may work 2 days, or sometimes 3 or four days in a particular town, then go home for the weekend. What am I supposed to do? File 50 state tax returns for 2 days here, 3 days there? Ahhhhhhhhh!!!!!!

  543. Roger on Sun, 23rd Dec 2012 9:08 am
  544. I am interviewing for a job in Tennessee, but intend to keep a home in Illinois and an apartments in Tennessee. I will fly back to Illinois on most weekends. My wife will be staying in Illinois most weeks. How do I handle state taxes?

  545. Admin Roberg on Sun, 23rd Dec 2012 11:13 am
  546. Hi Robert,
    So why do you have a Missouri address? That wasn’t meant as a smart aleck answer, but seriously–why the Missouri address? I think it’s because you live in Missouri but you’re traveling to and working in Nebraska.
    So–because of that, I say you still pay Missouri taxes. File as a Missouri resident and a NE non-resident. Claim a credit for taxes paid to Nebraska on your MO return.

    Now–if you’ve really moved to NE, but still have a MO address because you just can’t sell the house, that’s a different story. Then you’d only file a NE resident return or maybe a part year return. Or maybe you’re renting the house and so you need to file a MO return for the rental income.

    It kind of depends on the situation. If you tell your work friends that you’re “going home” when you travel back to Missouri–we’ll that’s your answer right there.

  547. Admin Roberg on Sun, 23rd Dec 2012 2:39 pm
  548. Hi Mark from Texas,
    You do have kind of a crazy schedule, but you don’t have to file 50 different tax returns. A person like you just files taxes for his home state–okay, you’re in Texas, no home state. Still, you don’t file tax returns for all the cities you travel to.
    Your situation is not like you’re spending that much time in any of the cities. You’re just making temporary visits so you’re not required to be filing multi-state tax returns.
    That said, do be careful about certain cities–but I’m guessing your employer would take care of that if it was an issue. For example, professsional baseball players that play in St. Louis wind up paying the St. Louis city tax for every game they play here.
    But generally, that’s not going to be your problem. (Unless you’ve got a pretty mean fastball or something like that.) In a previous life, I used to live in Boston but traveled all over the place. Same as you, I only had to file a state return for the state I lived in. When you’re only spending a few days in a city, that’s all you can be expected to to.

  549. Admin Roberg on Sun, 23rd Dec 2012 2:56 pm
  550. Hi Roger,
    You will file your taxes as an Illinois resident and pay Illinois income tax. Tennessee doesn’t really have an income tax. They have a tax on investment income, but since you’re a non-resident, your investment income would be taxed by Illinois anyway so it won’t matter for you about Tennessee.
    If your company won’t withhold for Illinois taxes, you might need to make estimated tax payments so that you don’t wind up owing a lot next tax season. When you file your taxes this year, you can have your preparer make some estimated payment coupons for you. Or just do it yourself if you’re filing your own taxes. It’s really just a few clicks of a button to get them done.

  551. Bushra on Mon, 24th Dec 2012 9:58 pm
  552. My husband and I both live in different states and work in different states. I live in Texas and am employed here- we do not have a state income tax. My husband works full time in WV and he has a state income tax. On my last return I had to pay towards WV state income tax based on my income as well because we file jointly- how does that make sense- why would my income which I did not produce in WV go towards state income tax. I make sig more than he does so the payment ends up being significant. Should we file separately…we have two children but they live with me. My accountant explained something like because we file married I have to contribute to state income tax in that state even though I do not live there or work there.

  553. Ken on Tue, 25th Dec 2012 8:28 pm
  554. I have an inquiry about filing my income tax return for TY2012. In January, 2012 relocated from Georgia to a new job in Illinois. I have stayed in Illinois in a rented apartment for most of the year. From time to time over the course of the year (about 4-5 times for about 4-7 days each time), I have returned to my house in Georgia. I consider my house in Georgia to be my legal domicile residence, and I would like to maintain the homestead exemption (~$15,000) that it enjoys. Since I have earned almost all of my income from my job in Illinois, and I have stayed for most of the year there, I understand that I would be considered a resident for tax purposes of Illinois. Can I I maintain my domicile legal residence in Georgia; if yes, how do I? Does this situation trigger multistate residency?

    Thanks.

  555. Ron on Wed, 26th Dec 2012 9:15 am
  556. My son-in-law lives in MN and will be starting a new job as an independent contractor in January for a company based in North Carolina. He will be providing construction management services for projects primarily in NC and will be required to physically be in NC about 25% of the time. The rest of the time he will be able to do the work electronically and via phone from MN. I know that his expenses related to travel will be deductible. My question is will all of his income be deemed to be generated in NC? Or does it get prorated somehow based on where he is physically? If some of the construction projects are in a 3rd state (i.e. South Carolina), would that necessitate a 3rd state return? What determines a state’s ability to tax income…the headquarters location, the construction project location, or the location of my son-in-law when he provides the services?

    Thank you!

  557. Jaime on Thu, 27th Dec 2012 6:54 am
  558. Hi! I am very naive when it comes to taxes so I have a silly question. I am a missionary in Wales, U.K. but get paid in US dollars. My missions agency is in Missouri and I get a 1099 each year. I am permanently living in the U.K. Am I still required to pay Missouri taxes even though I do not live or work there but my agency is from there?
    Thanks,
    Jaime

  559. Jen on Thu, 27th Dec 2012 3:34 pm
  560. Hello :) I work from home for a hospital in Michigan, and I lived in Michigan up until April of year and then I moved to Indiana. Michigan has continued to take taxes out and I never thought of turning in any kind of paperwork to be exempt since they have an agreement for taxes between the two states. I’m sure I will end up owing Indiana state taxes, but I obviously paid way more to Michigan than I needed to since I technically should have been exempt since April. How will that work when I file my taxes in Indiana? Thanks in advance!!

  561. Michael Siebert on Thu, 27th Dec 2012 6:09 pm
  562. Bushra,

     

    If you file joint federal return, normally you must file joint state tax returns.
    On WV tax return, husband is resident and wife is non-resident.
    West Virginia allows you to allocate income per resident and non resident and apply tax to only the income made in the state.

  563. Michael Siebert on Thu, 27th Dec 2012 6:36 pm
  564. Jen,
     

    You will need to file a Michigan tax return as a part year resident to get the Michigan tax withheld back. The reciprocal agreements exempt nonresidents from income taxes imposed by each state on salaries, wages and other employee compensation. If a Michigan resident erroneously had income tax withheld for a reciprocal state on salaries and wages earned there, it is the Michigan resident’s responsibility to file a nonresident tax return with that state to get a refund of the tax withheld in error.

     

    It looks like you subtract all Michigan earnings since April from your Indiana return.
    Look at this link as well if you have not already: http://www.michigan.gov/taxes/0,1607,7-238-43715-154059–F,00.html

  565. Scott on Thu, 27th Dec 2012 11:36 pm
  566. I was hired into NY state for a rotational position. The company is withholding NY state taxes, however I have only ever worked in the state of Florida for the position as this is where I am currently rotating. I have lived in Florida for the required years and am a resident for tax purposes. I believe the company is incorrect for withholding NY state taxes as the income is being earned in the state of Florida (no state income tax). What is the correct course of action? Who is right…is the withholding of state taxes correct?

  567. Bob on Thu, 27th Dec 2012 11:40 pm
  568. I was hired into DC for a rotational position. My permanent residence is in Maryland. I am currently rotating in NYC for the position. The company is withholding only DC taxes. I am under the belief this is improper and I am liable for NYC taxes, NY state taxes, and then Maryland income taxes. The company says I am liable for DC taxes and Maryland taxes, which to me makes no sense as no economic activity is created through DC? What is the correct? Please help? Thank you!

  569. Josie on Mon, 31st Dec 2012 11:17 am
  570. My husband is in the military and I am a full time employee. He is currently stationed in NC, where I live with him as well. We are both still residents of our home state, Texas. I know I do not have to file a state tax return for Texas but North Carolina does require filing. My husband’s income only has to be claimed on the federal return due to our residency remaining in Texas. I have a problem however because since I started my job in NC in Jan 2012 my employer did not file Texas as my home of residency so this entire tax year, NC has been taxing my income although it should not have been. Will I have to file a state tax return or worse! pay taxes to NC?? Or is there a way that when it comes to file our federal return that I can receive the money back from North Carolina?? Please help! as my employer has not done much to help me resolve this misunderstanding. Thank you!!

  571. Doug on Mon, 31st Dec 2012 12:43 pm
  572. My wife and daughter and I lived in Colorado at the beginning of 2012. At the beginning of January, I started a new job, based in Illinois, knowing that we would be relocating once we sold our residence in Colorado. In the meantime, I commuted every week to work in Chicago or Houston (Chicago is where the job is based), flying home on weekends, and also working from home one or two days per week. My wife continued to work in Colorado for her employer. Once our residence sold, in March, we moved to Illinois, but lived in corporate housing for two months. In May, we bought a house in Illinois and got IL drivers licences. My wife still owns a house in Colorado that we rent out, and I also had some residual income from my previous job that I left in 2011, that was paid to me in 2012. I was also recently notified of taxes paid for me by my previous employer due to taxable benefits used in the last two months of 2011 (CO taxes paid).

    I know we need to file part-year returns for both Colorado and Illinois. My questions are:
    When are we considered Illinois residents? Upon moving into corporate housing, or upon purchasing our own residence there (Colorado has a lower income tax rate).
    How do we handle the rental still owned in Colorado?
    How do I handle the taxes on the benefits from my previous employer, as they were used last year, while I was still a Colorado resident, but were not reported until December, well after I had become an Illinois resident.

  573. Admin Roberg on Tue, 1st Jan 2013 9:48 pm
  574. Hi Ken,
    It sounds like you’ve got two homes. The big issue here is–is your job in Illinois a permanent job or a temporary job? If your Illinois job is temporary–then you really are a Georgia resident. But if your Illinois job is permanent, even if you plan to move back to Georgia, you’re technically an Illinois resident.

    Where this really makes a difference is in your investment income, retirement income, and things like that. Earned income is taxed where you earn it so no matter what, Illinois will tax your job income.

    Now, since your home in Georgia is your main home, you can still deduct your real estate taxes and interest on your federal tax return.

    I would file your tax return as a Georgia resident and an Illinois non-resident. You’d still pay your tax on your wages to Illinois, but any other income that you earn will be taxed to Georgia. You will take a credit for taxes paid to Illinois on your Georgia tax return. That’s what I’d do for 2012 anyway. You may want to rethink this for 2013 if you choose to stay in Illinois.

  575. Admin Roberg on Tue, 1st Jan 2013 10:01 pm
  576. Hi Ron,
    Your son’s business is going to be tricky. As an independent contractor spending 25% of his time in NC, that implies that he’s working in NC and will have to pay NC taxes.
    He’ll have to keep good records about where he is working. I’d say that when he’s working in NC, then he should pay tax on that income to NC and when he’s working from Minnesota, then that income should be taxed to Minnesota.

    That said, it will be a little confusing. He’ll need to keep good records. Some of these construction guys wind up doing several states. I work with a construction manager that routinely has five or six states a year. He travels from job site to job site, lives in a mobile home and brings his wife wherever he goes.

    It’s not impossible. The important thing is to make sure he keeps track of all of his expenses so that he can write them off.

  577. Antoine on Wed, 2nd Jan 2013 1:05 pm
  578. Good afternoon here is my concern. Im from FL and it has been always my home of record. I recently moved to MD with Military and also paying MD state taxes as well, but I still have FL has my home of record. Ive been in Maryland for four months out of the year 2012 and the other 8 months in FL. What kind of guidance can you give me?

  579. Antoine on Wed, 2nd Jan 2013 1:17 pm
  580. I forgot to mention also government contracting as well in MD.

  581. Jesse on Wed, 2nd Jan 2013 1:18 pm
  582. My wife and I moved permanently to Missouri in April of this year. We both are full time students since moving to Missouri and have not worked since we left Texas. Do I need to file taxes for Missouri since we have not yet worked in Missouri? Thanks!!

  583. KDT on Wed, 2nd Jan 2013 4:07 pm
  584. Hello

    In January 2011, my son and I moved from Colorado to Minnesota. Then in September 2011, we moved back to Colorado. I did not work in Minnesota. I did have my son in daycare so therefore paid daycare expenses. How do I file? Can I claim the daycare expenses in Minnesota and moving expenses to and back?

  585. KDT on Wed, 2nd Jan 2013 4:43 pm
  586. To add on to my first comment, I did work in Colorado in January 2011 before I moved and when I came back to Colorado in September 2011, I did start working in Colorado again.

    Thanks for the help

  587. Admin Roberg on Wed, 2nd Jan 2013 8:58 pm
  588. Hi Jaime,
    I’m guessing that you are a US citizen. As a US citizen, you are still required to file a US tax return, even though you live in Wales. But what you can do is use form 2555 – which allows you exempt $95,100 of your income from tax. That’s in US dollars.
    Since you do not live or work in Missouri, you will not be required to file a Missouri tax return.
    That’s not a naive question. I get that all the time and it can be really confusing.

  589. Admin Roberg on Wed, 2nd Jan 2013 9:05 pm
  590. Hi Scott,
    I want to make sure I understand correctly–you were hired into New York state, but you live and do your work in Florida? Do you mean that you were hired by a New York company, but continue to live and work from Florida? You are not physically flyiing or driving to New York to perform this work, correct?
    If I’m understanding you, then no–you should not be paying New York tax. What you will do is file a New York tax return as a “non-resident” and show that none of your income was earned in New York. You’ll basically be asking for a refund of all of the New York state tax that has been withheld.
    You’ll want to have your employer stop the state withholding.

  591. Admin Roberg on Wed, 2nd Jan 2013 9:21 pm
  592. Hi Bob,
    Do you work for the same company as Scott? You’ve both got me confused. I think because when I hear the term “rotation” I think of medical personel and they do their “rotation” in the state the rotation is in. You guys might need to educate me a bit more about what you do.

    The bottom line is: you pay taxes where you physically work and you pay taxes where you physically live. That said, sometimes you are sent someplace temporarily. Those situations vary. For example, I used to live and work in Massachusetts but I would go work in Oklahoma for my company. Those trips were always a week or less in time. I never paid Oklahoma state taxes.

    That said, some companies have you move to a new city for a job (like a rotation.) In those cases, you often do have to pay that state’s tax. That’s going to depend pretty much on each state and city and the length of your stay. If you’re working for a well established company, they probably are doing it right. If it’s a new company, it’s easy to make mistakes.

    In your case, I’m confused. You were hired for a rotation in DC, but your rotation is really in NYC? Am I understanding you correctly? Did you get transferred or something? Sorry for the confusion. But I’m guessing that you live in Maryland, you do not live in DC–that’s correct right?

    Bottom line, if you are physically working in NYC–you’re right, you’ve got NYC city and state taxes to pay, plus your home state of Maryland taxes.

    If you are physically working in DC–then of course, you pay DC and Maryland tax.

  593. Admin Roberg on Wed, 2nd Jan 2013 9:28 pm
  594. Hi Josie,
    Want you need to know about is the Military Spouses Residency Relief Act. Here’s a link to the North Carolina website that explains it: http://www.dornc.com/taxes/individual/armedforces/spouses.html

    You will have to file a North Carolina tax return, but you should have all of your North Carolina withholding refunded.

    You’ll want to fill out a new W4 from for NC for your employer and say that you are “Exempt” from NC withholding so that you don’t have any state tax taken out in 2013.

  595. Admin Roberg on Wed, 2nd Jan 2013 9:38 pm
  596. Hi Doug,
    You may as well just file your taxes as an Illinois resident and a Colorado non-resident. I’m pretty sure that’s how your company did your withholding–all for Illinois. And, because you were working in Illinois–well that’s the way it’s taxed. Or at least, report your move in January.
    Your wife can report her move in March if the returns allow it. If you have to have the same month–you can use March as well.
    The bit about the old income. You received the money in 2011 but it wasn’t reported until 2012? Is that correct? Technically, you should amend your 2011 return. But if you received a statement saying the money was received in 2012–well then I’d report that you got it early — which is true — and put that with your Colorado earnings.
    Your rental in Colorado will he handled like any other rental–it goes on your Colorado return. (Or you could hire your friendly, neighborhood, internet answer lady–I do those types of returns!) :)

  597. Crystal on Thu, 3rd Jan 2013 1:53 pm
  598. Hello

    In January 2011, my son and I moved from Colorado to Minnesota. Then in September 2011, we moved back to Colorado. I did not work in Minnesota. I did have my son in daycare so therefore paid daycare expenses. How do I file? Can I claim the daycare expenses in Minnesota and moving expenses to and back? I did work in Colorado in January 2011 before I moved, and also from September – December 2011, when I moved back to Colorado.

    Thanks for the help

  599. Duke on Thu, 3rd Jan 2013 7:48 pm
  600. I live in Florida. I work in Florida,ga,sc,nc,tn,Alabama and Mississippi. Soon to work n mass. What do I do for taxes? I’m not self employed. Company is out of Ohio., I travel a lot for work. Hotels 6 nights a week.

  601. Roger on Fri, 4th Jan 2013 8:20 pm
  602. Admin Roberg,
    I left you the question that you responded to on Dec. 23 at 2:56. Thanks for the answer, but I should probably have asked the question another way. If I spend 5 days & nights per week in Tennessee, and the weekends back in Illinois, is there a reason I cannot declare Tennessee as my primary residence (and benefit from the lower tax rates)? Thanks again for the help!

  603. Admin Roberg on Sat, 5th Jan 2013 3:22 pm
  604. Hi Antoine,
    You’re in the Military in Maryland and your resident state is Florida. You will not pay Maryland state tax on your military income. You will have to file a Maryland return though because you have another non-military job. You will have to pay Maryland taxes on that job.
    Here’s a link to the Maryland State Department of Revenue website that explains the rules: http://individuals.marylandtaxes.com/incometax/military/nonresident.asp

  605. Admin Roberg on Sat, 5th Jan 2013 3:26 pm
  606. Hi Jesse,
    Welcome to Missouri. Finally, an easy question! (For me anyway.)

    Since you have not made any money in Missouri, you will not be required to file a Missouri return. That said, you’re now a resident of Missouri and you’ll have a Missouri address on your federal tax return.

    Missouri is going to get a copy of your tax return from the feds and then they’re going to send you a letter asking why you haven’t filed a Missouri return.

    Don’t worry about this. You will check the box that says, “I was not required to file a Missouri return in 2012.” Then on the back of the form you will write, “I did not earn any income in the state of Missouri in tax year 2012.”

    That’s all.

  607. Admin Roberg on Sat, 5th Jan 2013 7:23 pm
  608. Hi KDT,
    So you moved to Minnesota–didn’t find work, and then moved back to Colorado. That makes you a part year resident of Minnesota and a part year resident of Colorado. (You get that part already don’t you?) If you made no income while you lived in Minnesota–then you won’t need to file a Minnesota tax return.
    Your question is about the child care credit for the time you spent in Minnesota–but you didn’t work in Minnesota. In order to claim the child care credit, you either need to be working–or be in school, otherwise it won’t count. So let’s say you were in school, you can still claim the child care credit on your federal return, but you still won’t have to file the Minnesota state return.
    Since you didn’t work in Minnesota, you can’t claim your moving expenses to MN. But, if you landed a job in Colorado, then you can claim your moving expenses back.

  609. Anne on Sun, 6th Jan 2013 1:05 am
  610. Hello. My permanent residence is in Oregon but have worked in Washington for 3 months and Nevada for 3 months this year. I do not own any properties in both Washington or Nevada. How do I file my taxes? Thank you.

  611. Admin Roberg on Sun, 6th Jan 2013 4:15 pm
  612. Hi Duke,
    You sound like a traveling salesman. You are in so many places that you probably haven’t been in one place long enough to count for taxes. I suspect that you don’t need to be doing state taxes for those other states, and since you live in Florida–you’re scott free.
    The only exception would be is if your company is withholding for those other states, but I’m guessing that they’re not doing that.

  613. Duke on Sun, 6th Jan 2013 6:26 pm
  614. Thank you. Not a salesman but I travel a lot. I install GPS tracking devices on commercial vechicals.

  615. Admin Roberg on Sun, 6th Jan 2013 8:36 pm
  616. Hey Duke,
    My son works on software for GPS tracking devices for commercial vehicles. Small world isn’t it?

  617. Admin Roberg on Sun, 6th Jan 2013 8:41 pm
  618. Hi Anne,
    In your situation, I’m thinking that you should file as an Oregon resident and non resident of Washington and non-resident of Nevada. I’m thinking that you really are an Oregon resident and that’s your home base, right? You weren’t really moving to Nevada or Washington.

    Now it also seems to me that you had “temporary” job assignments. You may be able to claim your expenses of being in those other places as “employeee business expenses” unless your company paid for everything. There’s potential for this to be a really big deduction for you.

  619. Admin Roberg on Sun, 6th Jan 2013 9:35 pm
  620. Hi Roger,
    Your home really is in Illinois. Your wife is in Illinois. You’re going to have to pay Illinois taxes. Sorry.

  621. Anne on Mon, 7th Jan 2013 6:13 pm
  622. Hi Admin Roberg. The positions that I was in for those two states were full time work but it was for a short duration. The expenses of moving were not paid by my company either. Do you think that I have to file this separately as well? If so, what types of forms do I need to claim for those expenses? Thank you

  623. Admin Roberg on Mon, 7th Jan 2013 9:45 pm
  624. @Anne,
    Am I right in assuming that you did these jobs for one company? That’s even better, although not necessary.
    When you work at a temporary assignment, you may be able to deduct your housing, your travel, and your meals for the time you were away from home. See why this could be a big deduction?
    For a position to qualify as “temporary” you have to know in advance that it’s only intended to be temporary. A good example is traveling medical personel or traveling IT consulants.
    The expenses go on form 2106 and they roll to the Schedule A.

  625. Chris S. on Mon, 7th Jan 2013 10:40 pm
  626. My wife and I live in Houston, Texas, for over a decade. No state income tax. We own a house here together and she was employed for the state of texas for over 13 years with her last day worked was 11/12/2012. She as taken a position for a year in Fairfax, VA and started on 11/26/2012 and received at least 2 full paychecks and smaller one.

    We don’t own any property VA, her driver’s license is from Texas and the car she is driving is in my name only and registered in Texas. I am living and working in Texas and have no intentions of moving to VA until the end of 2013, as I have projects for work that require me to stay here as well as packing up the house and putting it up for sale in the next several months. My wife is currently staying in the Fairfax area in corporate housing and has no utilities in her name, no bank accounts there, nothing at all. And as I mentioned above, the car is registered in my name only and only in Texas. Her driver’s license is from Texas as well.

    Does she have to file in VA? I see from her paycheck stub that they are with holding the Virginia taxes (TX-VAW), but her total amount earned in VA for 2012 will only be around $9k.

    I really could not find any real answer on the Virginia State Dept of Taxation website that really answered my question. But it seemed like they wanted a copy of our Federal Tax return and wanted to know how much my wife earned the entire year, which was all in Texas and over $125K up to her last paycheck.

    Couple of things:

    I know she will have to pay taxes for the entire 2013 tax year when they are due in 2014 and I understand and am good with that, but since 95% of her income was from Texas (where she lives and still lives), why do they want that? That is really none of their business what she earned here.

    Also, I don’t feel comfortable sharing my own personal tax information with them. I earn over $200K a year and that should not be taxed in VA. Nor should my wife’s $125K be taxed in VA since it was earned in Texas.

    Also, we are both US Born Citizens, with nothing to hide. We pay our taxes every year and have good credit. I just don’t understand why, if she has to file, they want to see my income as well??

    Any help is greatly appreciated.

    Thanks,

    Chris

  627. Chris S. on Mon, 7th Jan 2013 10:41 pm
  628. Sorry for the grammar errors, I was trying to multi-task while I wrote the above! I didn’t do too good of a job!

  629. Alicia on Tue, 8th Jan 2013 5:34 pm
  630. Hi Jan,

    I was living and working in DC until June 2012. In June, I moved to New York City for graduate school. I am still working with the same company (though on an hourly basis since I’m a student) and they transferred me to their New Jersey office (although I always work remotely from NYC). Do I file taxes in DC, NY, and NJ? What constitutes as a permanent address? I am from upstate New York and have never changed my permanent address (on my license or credit cards) to DC or NYC. On my W-4, should I put my current NYC address or my home (upstate) address? Thank you!

  631. Admin Roberg on Tue, 8th Jan 2013 9:15 pm
  632. Hi Chris S.
    Don’t panic, it’s not so crazy as it seems. First and foremost, you wife will have to pay Virginia income tax on the money that she earned in Virginia. She is a non-resident of Virginia. You are a non-resident of Virginia also.
    You have a couple of options, you might file separately–that would keep your income out of the Virginia return completely.
    It sort of depends what works out best.
    Many states start their income tax forms with the numbers from the federal tax return. Since you’re married filing jointly–that’s why Virginia asks about your income. Later, there are other forms where you show that your income wasn’t earned in Virginia so you are not taxed on it.
    Do your federal tax return using software. I have a program on my website, the 2012 will go up as soon as the software company makes the changes from the new laws Congress just passed. Then add the state of Virginia–if you input everything correctly, it will be really easy. The important thing is that your wife is a “non-resident” of Virginia and so are you.
    If you really don’t want Virginia to have your information, then file separately.

  633. Admin Roberg on Tue, 8th Jan 2013 9:18 pm
  634. @Chris,
    I’ve got the spelling grammar problem myself. Plus the whole typing thing in general!

  635. Jim G. on Tue, 8th Jan 2013 10:01 pm
  636. if i live in Michigan and worked and get paid out of Texas for part of the year, do I owe state taxes to Michigan on wages earned in Texas (which has no state tax)?

  637. Jim G. on Tue, 8th Jan 2013 10:07 pm
  638. i should have said “got” paid out of Texas == i should add i also had earnings in Michigan and had taxes withheld there

  639. Jennifer R on Wed, 9th Jan 2013 1:15 am
  640. I have a different kind of problem. I process payroll for my company located in Alabama. Our out-of-state owner has placed one of their employees on our payroll who resides in Florida. This employee has insisted that we do not withhold Alabama state taxes; that we need to indicate he is a sales person working out of Florida, not Alabama. He stated he has done this while working for other companies in taxing states and hasn’t had a problem. If I am told by my supervisor and another company official to do as he requests, how do I handle this when I know Alabama law says I shoulld withhold?

  641. Admin Roberg on Wed, 9th Jan 2013 8:35 pm
  642. Hi Alicia,

    On your W-4 you’re going to put your current New York City address because that’s the address that your employer has listed for you, and that’s with the address you want them to have. You are a New York resident and you will file a DC tax return as a nonresident. You will file a New York City tax return and you’ll file New York State tax return is a New York State resident. You don’t really work in New Jersey it’s just that your company’s offices are in New Jersey. Since you’re not setting foot inside New Jersey you won’t be filing an NJ tax return.

  643. Admin Roberg on Wed, 9th Jan 2013 8:42 pm
  644. Hi Jim,
    if you live in Michigan and work and get paid out of Texas then you’re going to pay taxes to the state of Michigan on the wages that you earn in Texas. Normally you get a credit for the taxes that you pay to another state, but since Texas doesn’t have a state tax, you’ll pay it all to Michigan. Sorry about that.

  645. Admin Roberg on Wed, 9th Jan 2013 8:52 pm
  646. Hi Jennifer,
    I think I understand where you’re coming from and I think I know the answer for you. Here’s the Alabama employer withholding handbook: http://www.revenue.alabama.gov/withholding/whbooklet_0112.pdf

    You want to go to page three. I think if you go to the paragraph after the section about a non-resident employer withholding taxes on non-residents who work in Alabama—the next section is about non-residents not working in Alabama.

    The way I read it, as long as the Florida guy does not work in Alabama–then you do not have to withhold Alabama taxes. If he works in Alabama–well then you do.

    I hope that helps.

  647. Chris S. on Wed, 9th Jan 2013 9:44 pm
  648. Thanks, really appreciate your response. I think I will just end up making a doing a mock run of our federal taxes as married-filing seperately and then plug my wife’s numbers into the VA tax return and send that in. But I plan to file our Federal taxes as married and then I should be good to. For second, I though that VA Tax Office wanted me to a copy of my federal taxes in to them as well as the state taxes.

    Thanks

    Chris

  649. Scott G on Fri, 11th Jan 2013 4:36 pm
  650. I lived and worked in Tennessee for all of 2012 and still maintain an address there, at least for a few more months of 2013. So the TN residence might not be permanent for all of 2013, but I will try to keep it for all of 2013 if I can.

    My company moved me to Cleveland Ohio for an indefinite length assignment (starting Jan. 2nd 2013). I may or may not be able to move back to TN in 2013. I have a short term lease on a temporary residence here in Ohio (3 months) but may have to extend it if this assignment becomes longer term.

    I have filed an Ohio W4 with my employer that lists my TN address and put Exempt on it so that taxes are not witheld. TN has no state tax.

    So let’s say the work assignment in Ohio lasts all year 2013 and into 2014 and I have maintained a residence in TN for all of 2013 while renting and working in Ohio. Should I file a W-4 with Ohio now and have them withold state taxes, and then at tax time file a claim to get state tax back because of my residence in TN (hopefully I will move back at the end of 2013)? Or leave it the way I have it where I have listed myself as exempt and no state tax is deducted?

    Not sure what to do in this case but I would prefer to have my money now rather than err on the conservative side by paying Ohio taxes and file to get the money back later. I understand that there may also be city taxes here in Cleveland.

    This scenario assumes I will work in Ohio all of 2013 and maintain an address in TN for all of 2013. Any suggestions?

  651. Admin Roberg on Sat, 12th Jan 2013 9:33 am
  652. Scott,
    Even though you are a resident of Tennesee, you have to pay Ohio taxes on the income you are earning in Ohio. Change your W4 today. You are not exempt. That’s for high school kids who don’t work enough to have taxes withheld. I’m guessing you’re a professional. Your human resources person shouldn’t have let you do that.
    You wil also have to pay your city taxes, usually that’s automatically withheld, but check with your payroll person on that.
    Whether you work for a full year or part year in Ohio and maintain your Tennesee residence, you must pay Ohio taxes for the wages you earn there.

  653. David S on Mon, 14th Jan 2013 2:24 pm
  654. Hi,

    I worked in Texas until July where there is no state income tax before I took a promotion and moved to a suburb of Chicago. I work for UPS so there is a little caveat that is throwing me off.

    The first W2 has all my income earned in Texas and the second W2 has my combined income between Texas and Illinois.

    On the first W2, from working in Texas there is, of course, no state taxes that were paid. However, on my second W2, the taxes I paid after moving and while working in Illinois are listed and which I believe were deducted properly, but it shows my total income for 2012 as being “taxable” in the state of Illinois. Does this mean when I file I will owe Illinois taxes on all of my income for 2012? Or, am I going to have to subtract my income from the first W2 from the all encompassing second W2 and just note that I moved in July?

    All of this would be much easier, but I technically changed “companies” within UPS when I received the promotion. The employer addresses are the same, but the EID’s are different. I am just not sure how to proceed.

    Thanks!

  655. Maryann Sims on Mon, 14th Jan 2013 7:16 pm
  656. My husband drives a truck over the road – all 48 states. The company he works for is based in Illinois. We live in Arizona. Last year, he paid in $1200 Illinois state tax. He had to pay $486 to Arizona. All Illinois refunded to him was $100! How is this fair? He is being double-taxed isn’t he? What happens if he claims 10 exemptions on his Illinois W4? Will they come after him for the taxes? This is not right.

  657. Admin Roberg on Mon, 14th Jan 2013 9:22 pm
  658. Hi David S,
    Isn’t it fun getting those weird W2′s. You will file as a part-year resident of Illinois. So the confusing part is that it sounds like you’ve got double reported income.
    Question for you: are the federal EIN’s different or just the state ones? I expect the state EIDNs to be different. But if the W2′s have different federal EIN numbers, it’s important to make sure that you don’t have more than the total of you income being reported. For example, let’s say you made $20,000 in Texas and $30,000 in Illinois–you don’t want the total income reported to be more than $50,000.
    You might need to have your employer correct the W2 if that’s the case. Also, your Illinois income should only be the amount of income you earned in Illinois–so you might need a corrected W2 anyway.
    Sometimes you’ll get three W2s–one would say Texas: 20,000, Illinois: 30,000 and the third would say State: 50,000. Since you lived in Texas, you might not have one that says Texas at all.
    Sorry if I’m rambling. Bottom line–you should only pay Illinois tax on the income you earned in Illinois.

  659. Admin Roberg on Mon, 14th Jan 2013 9:32 pm
  660. Hey Maryann,
    I really don’t have enough information to answer your question. It seems like your husband wouldn’t be taxed in Illinois–but I don’t know enough about the situation. Did you get professional help with your tax return?

  661. joe robinson on Tue, 15th Jan 2013 4:49 pm
  662. how does this work. married but she lives and works in cali. i live and work in az. maintain a home is az. she works and lives with relatives in cali. we visit on days off so i say my domicile is az, here 10 months of the time, never over there much more than a weekend. she has to stay there because of visitation for ex. do i need to report income to those money grubbers over there or can file m.f.s. in our respective states?

  663. Keenen on Tue, 15th Jan 2013 9:24 pm
  664. I have a house in Ga that I stay in when I travel on the weekends. I work in Texas, which do not have state income taxes. I am still a resident of Ga because I only have a apartment in Tx for work during the week. Am I still responsible for paying state taxes in Ga?

  665. SEAN HARRIS on Wed, 16th Jan 2013 11:51 am
  666. I WORK FOR A GA COMPANY AND THEY SEND ME TO CA FOR MEETINGS AND OTHER THINGS THREE WEEKS OUT OF THE YEAR. DO I NEED TO FILE A CA RETURN?

  667. Connie Isham on Wed, 16th Jan 2013 3:21 pm
  668. Hello Maryann.

    My husband is in TN, where I lived until 4 months ago. I moved to AZ for a job. TN is my primary address and this is only temporary, providing the job works – it is a contract position.

    The company that hired me goes through an employment agency to take care of taxes, etc. I could be on this contract position for 1 year or 3 years. It is undetermined as of yet. How do I file my taxes (what I have done over the years)? With TN as my primary address and AZ as a non-resident? If that is the case, can I deduct my rent here?

    Thank you!!

    Connie

  669. Charissa on Wed, 16th Jan 2013 6:05 pm
  670. I lived in OR state at the beginning of 2012, but was unemployed. I moved to NY at the end of March and immediately started work. Usually I would just file a NY return and not worry about OR, but later in the year, my company sent me to OR to manage a seasonal location for a couple of months. OR state taxes were taken out of my paycheck, but my place of residence was still NY at this time. Do I file state returns for both NY and OR?

  671. Admin Roberg on Wed, 16th Jan 2013 8:19 pm
  672. Hi Joe,
    I’m going to send you to a California tax preparer. You’ve got California and Arizona–and they’re both community property states–so you’ve got an issue there. Plus, California has different rules than everybody else.

    Normally, I would say–claim married filing separately–but since you’re also from a community propert state–California treats that differently. So you’ll have another set of California rules (and they’re probably not going to land in your favor.)

    So, I recommend a California preparer. They know the CA rules better than I do and you’re going to want a specialist. Sorry.

  673. Admin Roberg on Wed, 16th Jan 2013 8:30 pm
  674. Hi Keenen,
    You are a Georgia resident and you live in Geogia–you only work in Texas. Therefore, you have to pay Georgia state tax on the income you earn in Texas.

  675. Admin Roberg on Wed, 16th Jan 2013 9:20 pm
  676. Hi Sean,
    For three weeks you won’t need to file a California return.

  677. Admin Roberg on Wed, 16th Jan 2013 9:39 pm
  678. Hi Connie,
    I would file with Tennesee as your resident state and Arizona as your non-resident state.

    Now, if you knew for a fact that you would only be in Arizona for one year or less–then you might be able to deduct your rent on form 2106. Because it’s “undetermined” you can’t. (I know, I think that’s kind of silly myself, but that’s the ruling on that. Sorry.)

  679. Admin Roberg on Wed, 16th Jan 2013 9:49 pm
  680. Hey Charissa,
    Yes you will need to file returns for both New York and Oregon. Claim New York as a resident and Oregon as a non-resident.

    Granted, you lived in Oregon for the beginning of the year, but you were a non-resident when you actually lived there so it should work out just fine.

  681. Lyn Entrekin on Fri, 18th Jan 2013 10:16 am
  682. I moved to NC and changed residence the first part of 2012, and sold my residence in GA in Nov. 2012, and received a cancellation of debt when the house sold for way less than owed. Do I file state taxes with GA? I did not work in GA any of 2012- that’s why I moved.

  683. Jan Roberg on Sat, 19th Jan 2013 7:52 pm
  684. Hi Lyn,
    I would file NC taxes only.

  685. Lucas on Tue, 22nd Jan 2013 11:02 am
  686. Hey Jan, I have a question:

    I am a resident of Kentucky, and a student, but I’ll be doing a seven-month internship in Northern Virginia this year. Do I need to file a tax return for Virginia or Kentucky.

  687. Ken P. on Tue, 22nd Jan 2013 1:43 pm
  688. I have a question for you and I hope you can help. I currently have a home in MN. and pay MN state taxes. My home is there and I pay property taxes, I have a MN drivers license, cars are registered in MN, I have a daughter in the MN public school system, voter’s registration is in MN. I consider myself a MN state resident and have MN state taxes withheld from my checks. I currently work in WA and go back to MN about 6 times a year. There is no WA state income tax. I accepted a position that the company is located in Oregon. My question is do I have to pay both Oregon and MN state taxes? Thank you.

  689. Lil on Tue, 22nd Jan 2013 7:54 pm
  690. we moved from maryland to california in jan 1, 2012. apparently my paycheck from maryland was delayed and wasnt issued till late jan 2012, so it looks like i have a maryland income for 2012. how will i be taxed by both states?

  691. Stephanie Rice on Wed, 23rd Jan 2013 7:18 pm
  692. Hello,
    I was trying to do my husband’s taxes on my own which is what I’ve done for the past few years. However, this time there’s something different on his W2. My husband has lived and worked in the state of TX for the entire year. He has not left the state to work anywhere else. On his W2 in box 14 it shows CASDI (California State Disability Insurance). Then in section 15 there are two lines for his state and local info. One line for CA with an employer’s state ID and one line for TX which shows N/A for employer’s state ID, along with two different wages in section 16 for each state. Why is there a line for CA if he’s never worked in that state and why is he having to claim CASDI…Hope you can help. I’m so confused

  693. Sarah Smith on Wed, 23rd Jan 2013 7:44 pm
  694. Hi there!

    I am a flight attendant based in Portland, OR. I’ve been based here for the entirety of 2012, but lived in Phoenix commuting. I finally moved to OR at the beginning of the year, and my W-2 already notes the new address. I’ve been withheld the taxes for Arizona for the year.

    So here are my questions:
    1. What are the rules on income tax in this situation?
    2. Should I change the address information on my taxes to reflect where I was living in 2012 or my new Oregon address?
    3. Do I need to do two different state taxes – one for Arizona, and one for Oregon? 4. If only one, how do I sort out the address situation?

    Thank you for your time!

  695. Jan Roberg on Wed, 23rd Jan 2013 7:53 pm
  696. Hi Lucas,
    Congratulations on landing that internship! The way that works is that you’ll file a Virginia “non-resident” return and a Kentucky “resident” return. You should get a credit on your Kentucky return for the tax that you pay to Virginia.

    Sometimes with students, they don’t earn enough money in another state to even bother filing, but since you’re going to be working there for seven months, I’m going to assume that you’ll need to file a return.

  697. Jan Roberg on Wed, 23rd Jan 2013 7:56 pm
  698. Hi Ken,
    The company is located in Oregon, but you’re working in Washington, right? In that case, you will only be paying Minnesota taxes. It doesn’t matter where the company is, what matters is where you phyiscally live and physically work. Since there are no state taxes in Washington, you will only pay Minnesota state taxes.

    (I’m originally from Minnesota!)

  699. Jan Roberg on Wed, 23rd Jan 2013 8:16 pm
  700. Hi Lil,
    It might be that you won’t even have to file for Maryland. It depends upon how much your check was for. I would tell you what the minimum filing requirements for Maryland are but their web site appears to be overloaded right now.
    If you had Maryland taxes withheld, you’ll want to file a Marland return to claim the refund.
    If you do need to file in Maryland, you should receive a credit in California for the tax that you pay to Maryland.

  701. Jan Roberg on Wed, 23rd Jan 2013 8:34 pm
  702. Hi Stephanie,
    Honest answer: I don’t know! Here’s my best guess: somebody in his payroll department did a whoopsies! It’s happened to me before. I live and work in the suburbs of St Louis Missouri. One year, I got my W2 and for some reason I has pay in Kansas City. Although I’ve been to Kansas City (nice town) I’ve never worked there. Someone had just messed up in the payroll department.
    I would contact your husband’s payroll department as ask about it. There are two possible outcomes here:
    1. Something messed up while printing out the W2s and they’ll have to issue him a new one. (Easiest, and hopefully that’s all it is.)

    or 2. Something got messed up earlier and they’ve been sending withholding payments to California on your husband’s behalf–in which case you file a California non-resident return to show that he never worked in California and you’re just claiming a refund for the withholding.

    For your sake, I hope it’s option 1.

  703. Jan Roberg on Wed, 23rd Jan 2013 8:43 pm
  704. Hi Sarah,
    So it looks to me like your company counted you as being stationed in Phoenix even though your base was in Portland.

    Normally, I would file as an Oregon non-resident and an Arizona resident–taking a credit in Arizona for the taxes that you paid to Oregon.

    But it sounds like your company is treating you as working out of Arizona–in which case, I’d just file the Arizona return. Companies withhold based on the state you’re working in–so for all intents and purposes, your company treated you as being based in Arizona for payroll purposes anyway.

    Do use the new address on your tax return–that way the IRS and the states can find you. You may receive a letter from Oregon asking why you didn’t file an OR tax return, and you will respond that you were living in Arizon in 2012 but moved to OR in 2013.

  705. Sarah Smith on Wed, 23rd Jan 2013 8:46 pm
  706. Thank you so much!!

  707. Mike on Thu, 24th Jan 2013 10:31 am
  708. Hello,

    I had an internship in Texas and lived there for the 3 months during that internship. Since Texas has no state income tax I was did not have any witheld. I live most of the time in Kansas where my income is very low being a student. The question I have is… Will I have to pay kansas state taxes on the income I received in Texas over the summer?

  709. Betsy on Thu, 24th Jan 2013 10:58 am
  710. Hello,

    I am a resident of Ohio, and temporarily living in NY (since September) while my b/f completes his schooling. My home address is still Ohio, and we’ll be going back there in May.

    I still work for the same company in Ohio where I’ve been working 2+years, just tele-commuting and doing everything over the computer, internet-based clouds, etc.

    They mail my paystubs to NY, and my W-2 was mailed here, so my W-2 has the NY address. Do I have to file anything for the state of NY?

    Thanks!

  711. Angie Nicholson on Thu, 24th Jan 2013 9:58 pm
  712. I live in Illinois and work in Missouri. I noticed that this year on my W-2 it listed that I had taxable income for the state of Illinois. Could this be because I elected to have specific amount of $ taken out of my paychecks for Illinois taxes? I looked at my W-2 from last year and there were no IL taxable income listed. I started taking out the extra money in Aug. or Sept. of 2012. Will this totally screw up my taxes? I am worried.

  713. Jan Roberg on Fri, 25th Jan 2013 10:12 pm
  714. Hi Mike,
    Your income from Texas is taxable in Kansas–because Kansas is where you live. Now, since your income was low–you might not have earned enough to be taxed anyway. But if your income is high enough, then it is taxable to Kansas.

  715. Jan Roberg on Fri, 25th Jan 2013 10:25 pm
  716. Hi Betsy,
    My first question is–did you have any New York withholding? If yes, you absolutely must file a New York tax return.

    Now I would consider you to be a New York non-resident, but if your New York source income is more than your NY standard deduction, then you are required to file. You mention your boyfriend being in school, but not you–so I’m guessing that your parents aren’t claiming you as a dependent-in that case the New York standard deduction is $7500.

    If you made less than $7500 in New York–I wouldn’t file a NY return. Technically, if you made more than that, you should claim the income you earned there because you were working in New York.

  717. Caroline on Sat, 26th Jan 2013 8:38 am
  718. I lived in South Carolina for part of the year, made a little money there seeking my car. Moved to Indiana in the summer and found a seasonal job as a sub contractor. Got married in December and my husband and I want to file jointly. How do we file? Because he is an Indiana resident and I wasn’t a resident of the state until the beginning of 2013.

  719. VANESSA M on Sat, 26th Jan 2013 9:25 am
  720. PLEASE HELP ME!!!

    OKAY MY HUSBAND LIVES IN FLORIDA AND WORKS IN ALABAMA. WE HAD TO PAY STATE TAXES IN ALAMABA. HOW DO I NEED TO GO ABOUT DOING THAT. AND WILL WE GET A CREDIT BACK FROM HIM PAYING ALABAMA STATE TAXES SINCE WE LIVE IN FLORIDA. PLEASE HELP ME

  721. Johnathan Cuppett on Sat, 26th Jan 2013 12:59 pm
  722. i live in md but just got married and she lived in wv we want to file married jointly how do i file my taxes in md and hers in wv.

  723. Jennifer on Sat, 26th Jan 2013 7:45 pm
  724. We for the year have been in ny as my husband goes to the Culinary Institute of America but our licenses, vehicle registration,etc are va as we are only here in ny temporarily till he graduates. Therefore I had no income for va, he however did as he did a paid externship there for about 5 months. How do I file? For tax purposes am I a ny resident even though everything is still under va.

  725. Jan Roberg on Sat, 26th Jan 2013 10:18 pm
  726. Hi Angie,
    I think you’re great! You’re going to file a Missouri non-resident return and an Illinois resident return. You had withholding taken out for Illinois, but the income is taxable to Missouri–it’s all good. You did the smart thing–now go do your happy dance. :)

  727. alex on Sun, 27th Jan 2013 2:42 am
  728. my resident is CA, but my work is based in VA, and i have a VA tax withheld. i travel to VA for 4 weeks, stayed in a hotel, then go home for 2 weeks, then go back to VA again for 4 weeks, then go home again in CA for 2 weeks, and so on and so fort.

    my wife is a stay home mom and has no income, I”m the only one that is working.

    so my question is… Do I have to pay taxes in CA and VA… and how do I file It,

    Pls. help me.

  729. Jan Roberg on Sun, 27th Jan 2013 11:59 am
  730. Hi Caroline,
    Congratulations on your marriage!
    Okay so you want to file jointly. Technically, your husband is resident of Indiana and you are a part year resident of Indiana and part year resident of South Carolina.

    Although for what it’s worth, it might just be easier to file as both being residents of Indiana and non-residents of South Carolina. It will probably work out to be the same amount of tax anyway.

  731. Jan Roberg on Sun, 27th Jan 2013 12:02 pm
  732. Hi Vanessa,
    You will file a non-resident return for the state of Alabama. Since Florida has no state income tax, you won’t be getting and credit for the taxes you pay to Alabama so basically all of his income that he earned in Alabama will be taxed there. The only way you’ll get any money back from Alabama is if he withheld too much. If he didn’t withhold enough, you’ll actually have to pay in. Sorry.

  733. Adam on Sun, 27th Jan 2013 12:36 pm
  734. I have a question…I am active duty military stationed in Connecticut but living in Massachusetts. I am (and always have been) an Ohio resident. Since I am stationed outside of Ohio my income is exempt from Ohio tax. I got married a year and a half ago, my wife is a Massachusetts resident and works in Massachusetts.

    Since my wife and I are residents of different states, we are filing our returns separately. So we will both file a separate federal return and I will file my state return with Ohio and my wife will file a Massachusetts return. My question is, is this the correct way? Do I also have to file a return with Massachusetts and my wife and Ohio return? My tax gets withheld from Ohio.

  735. Jan Roberg on Sun, 27th Jan 2013 2:30 pm
  736. Hi Johnathan,
    You have two options:

    1. You both file married filing separate, and she files a West Virginia return and you file a Maryland return.

    2. Or, you file jointly and she is a West Virginia resident and you are a non-resident while in Maryland you are a resident and she is a non-resident.

    Option 1 is probably fine if you don’t have children or college loan interest. Option 2 is probably best if you do have kids or college loan interest.

  737. Jan Roberg on Sun, 27th Jan 2013 3:23 pm
  738. Hi Jenny,
    So you’ve both lived in New York for the whole year. You have no income. Your husband worked in Viginia, and that’s really where you live anyway. So, here’s my question–was he living and working in Virginia for this externship? If so, since you really are Virginia residents, I’d file as Virginia residents.

    But do you have New York income? And you’ve been there for a year? Then I would file as a New York resident and a Virginia non-resident. Even though you’re going to be Virginia residents again–if you were in New York for the whole year–then you should file as New York residents.

  739. Jan Roberg on Sun, 27th Jan 2013 3:43 pm
  740. Hi Alex,
    File as a California resident and a Virginia non-resident.

  741. Jennifer on Sun, 27th Jan 2013 4:12 pm
  742. I have no va income and have all ny income he has no ny income and 5mon of va income from his externship. So I was thinking I do me ny resident and him va resident.

  743. Jan Roberg on Sun, 27th Jan 2013 5:04 pm
  744. @Jennifer–you can do that if you file separately–which should be fine if you have no children and no student loans. Otherwise, file jointly and do the extra paperwork because it would make a difference in how much you get back (or owe.)

  745. Jennifer on Sun, 27th Jan 2013 6:35 pm
  746. So both ny seems like the best since we do have student loans and he didn’t make very much and we can get the credit for the other states taxes so we aren’t double taxed. H&r block made it look as though I could do ny resident for me and va for him while filing together.

  747. Pam on Sun, 27th Jan 2013 7:49 pm
  748. I have two questions

    1. I am a resident of Florida and work out of my house 100% of the time for a company that is located in Virginia. My company does not withhold virginia taxes. Do I owe state taxes in Virginia?

    2. My husband also is a resident of Florida, works out of our house 100% of the time for a company in Viginia. His company withheld Virginia taxes. Will he get all if this back.

    We don’t own any property in Virginia and these jobs are our only source of income.

    Thanks so much

  749. Tricia on Sun, 27th Jan 2013 9:15 pm
  750. I live in Ga and have been out if work for 8months. My aunt who works in ga but lives in Sc has been supporting me and my children. She can claim my children even though she lives in a different state right?

  751. Lily on Mon, 28th Jan 2013 1:03 am
  752. Hi Miss Jan!

    I lived in California the beginning of 2012, I did not have a job or any source of income. I then moved to Virginia on March 6, 2012. I got a job (First Job) in early April. My question is, do I file a Part Year Tax Return for VA and CA? Or should I file a normal Tax return like every other Virginia resident?

    Thank you for this post!

    -Lily

  753. Jaime on Mon, 28th Jan 2013 2:24 pm
  754. We lived in Missouri for most of the year and we moved to Indiana in July and on our w-2 it wants the Locality name and it says C-62 but on this w-2 we worked at the same place we just swicthed store. I dont know which state it means.

  755. Amanda on Mon, 28th Jan 2013 3:15 pm
  756. My husband and I live in VA because he is in the military. Our state of residence is actually GA. I worked here in VA and had VA state taxes withheld. Now I am filing my return and it says I owe money to VA AND to GA. I am confused why I have to pay GA state taxes if Ive been paying VA state taxes all year? Is there not a way I can only be held responsible for paying VA taxes? It seems like Im double paying….?

  757. Zach on Mon, 28th Jan 2013 4:19 pm
  758. I am a NH resident and that is reflected on all of my paystubs. I spend most of my time in Rhode Island with my girlfriend and have my mail sent there. I worked 2 jobs this year. The first was in RI which the company paid me a per diem to stay in the state during the week. Instead of them paying for a hotel I stayed at someones residence in RI. They with held taxes for RI. The second job was in MA and some thing except they with held taxes in MA. I have received my w-2′s and they both have the mailing address in RI on them. How will this affect my filing since I am a NH resident? Is RI going to assume that I am a resident there and say I owe them money???

  759. Jan Fulcher on Mon, 28th Jan 2013 7:56 pm
  760. I was paid 5 weeks of unemployment compensation by the state of North Carolina as a resident of Georgia at the beginning of 2012. My husband and I both have only Georgia income after that time and were full year residents of Georgia for the tax year 2012. Will I need to file a NC tax return for the unemployment compensation?

  761. Jan Roberg on Mon, 28th Jan 2013 9:19 pm
  762. Hi Adam,
    I’m not avoiding your question, there’s something I need to look up. Then when I get to work I get busy and forget. I promise to answer you tomorrow. I think you’re fine filing separate–but I want to check something on your military return (You know that nagging feeling that there’s something important at the back of you head?) Anyway, I just want to make sure I’m giving you good advice. Sorry.

  763. Jan Roberg on Mon, 28th Jan 2013 9:33 pm
  764. @Jenifer–
    You can be married and be residents of different states–but technically you’re residents of NY right now.

  765. Jan Roberg on Mon, 28th Jan 2013 9:37 pm
  766. Hi Pam,
    Neither you nor your husband owe taxes to Virginia. You will file a Virginia return to claim a refund for the taxes that were withheld. You are non-residents and you did not earn any income in Virginia. That’s basically what the return will say. (It will have lots of zeros on it.) :)

  767. Jan Roberg on Mon, 28th Jan 2013 9:47 pm
  768. Hi Tricia,
    Sorry but no, your aunt cannot claim your children since they do not live with her.

  769. Jan Roberg on Mon, 28th Jan 2013 9:51 pm
  770. Hi Lily,
    Since you had no income in California at all, just file a regular Virginia resident return.

  771. Amanda N on Mon, 28th Jan 2013 10:04 pm
  772. I am having trouble figuring out my state return this year. My husband is in the military and is currently stationed in MD, but is from Texas and he doesn’t have to file a state return. I am from WV and we just got married in Sept of 2012. I continued working and living in WV until the end of November when I moved to MD to be with him. I didn’t make any income in MD, but I’m not sure how to file my WV return. We filed our federal return Married-jointly, but when I go to put in our information for the WV return (he has never lived in WV) it uses part of his deductions (alimony) when determining my return. Some of the numbers that have been coming up seem too be too high for a refund compared to last year. I made about the same amount as last year in WV and paid about the same in student loan interest. I’ve never filed a joint return before so trying to file just my income in WV is confusing me. Should they include his income and deductions when determining how much I owe and whether I get a refund or not? I have even tried putting in the sections that mine was the only income and that only my student loans interest should be included in the deductions, but the numbers still seem to be too high.

  773. Jan Roberg on Tue, 29th Jan 2013 6:50 am
  774. Hi Jaime,
    I’m lost. On your W2 it should list the state that you had taxes withheld from. That would be Missouri and Indiana, right? In the Locality–that would be your city. Here in Missouri you might have an SL or a KC for St Louis or Kansas City because we have city taxes that we have to pay.
    I’m guessing that C62 would be Perry County. They have individual income tax withholding.

  775. Jan Roberg on Tue, 29th Jan 2013 9:11 am
  776. Hi Adam,
    I found what I was looking for.

    1. You’re right that your military pay isn’t taxable in Ohio because you are an Ohio resident. I was confused because you had Ohio withholding–you’ll want to file an Ohio return so that you can get that back.

    2. You’re stationed in Connecticut–so your military source income isn’t taxed in Connecticut. So you’re good there.

    3. So with Massachusetts–the only income taxed there is your wife so filing separately is probably your best bet.

  777. Jan Roberg on Tue, 29th Jan 2013 9:30 am
  778. Amanda,
    You should be covered under the military spouses residency relief act–which holds that your income in Virginia is not taxable to Virginia but to Georgia.

  779. Jan Roberg on Tue, 29th Jan 2013 9:34 am
  780. Hi Zach,
    You’ve got three state returns to do: Massachusetts, New Hampshire and Rhode Island. Use your New Hampshire address on your tax returns. You are a resident of NH and file as a non-resident of RI and MA based on the income you earned in each state. You will claim a credit in MA for the taxes paid (as in what’s on the tax return, not what was withheld) to the other states.

    For triple states–you might want some help–the credit doesn’t always compute well in tax software.

  781. Jac on Tue, 29th Jan 2013 11:05 am
  782. Hi Jan,

    I live in CA now. If I hire my children (under 18) , also living in CA with me, to work for my LLC incorporated in Alabama, do I have to withhold PIT for CA or AL for salaries paid to my children? Do they have to file tax returns for both CA and AL?

    Thanks.

  783. Yvonne on Tue, 29th Jan 2013 12:45 pm
  784. We moved from Georgia to Alabama in Oct 2012, I still work in Georgia and they take Georgia state taxes. My husband is retired military and collects Social Security both are tax exempt in both states. He also withdrew from a 401K while we lived in Georgia. How do we file each state ? Part year resident in both states even though no Alabama tax is taken from my pay?

  785. Shashank on Tue, 29th Jan 2013 7:00 pm
  786. Hi,
    My wife and I live in NJ and both work in NJ. In Aug. I changed my job and was living in temp. housing in CA provided by my company. My company has been since been charging me CA state taxtes even though it is a temp. stay and my ties are with NJ. Which means I willl have 2 W-2′s (one form for each company). Federal taxes should be straight forward but am worried about the state taxes. When I am going to do my state taxes, I have worked partly in NJ and partly in CA (but my perment resident is still in NJ – family and house still in NJ), my wife has worked the entire year in NJ. So when I do my taxes using Turbo Tax, how should I file my taxes. Would I have to pay NJ taxes for the time I was in CA and will the CA state refund me my withheld taxes? Would this type of situation be handled by TurboTax software?
    When I file my taxes for CA, would they ask to pay me taxes for my wifes income as well since we do a joint return. Please advise.

  787. Jan Roberg on Tue, 29th Jan 2013 8:05 pm
  788. Hi Jan,
    Gee, I like your name! You probably didn’t make enough in those 5 weeks to be required to file in NC. I’d just do a Georgia return.

  789. Jan Roberg on Tue, 29th Jan 2013 8:18 pm
  790. Hi Amanda,
    You’re smart to thing there’s something wrong when the refund is way out of whack. It’s a good clue.
    Part of your problem is the whole Texas thing–it can mess up other state returns. Now, it sounds like you’ve already filed federal–if you don’t have children, I would have recommended filling separate for this year. But–too late.

    So–Your husband is a Texas resident and a MD non-resident and a WV non-resident.

    He has income in MD but no income in WV.

    You are a resident of WV.

    So–I think you may have gotten it right. Now here’s the thing–you’re married–by the way, Congratulations. So you’re paying tax at the married tax rate! And his deductions are your deductions–although the alimony deduction should be on the WV return. (Although you might not have a choice there–but if there is a choice, the alimony should be on the MD return.)

    But in your case, I’m thinking your refund actually will be higher than it used to be.

  791. Jan Roberg on Tue, 29th Jan 2013 9:07 pm
  792. Hi Jac,
    If you don’t live or work in Alabama then no payroll tax in Alabama. So you’re only dealing with California. I’d contact the California department of revenue about their payroll–that’s out of my sphere of knowledge. Sorry.

  793. Jan Roberg on Tue, 29th Jan 2013 9:12 pm
  794. Hi Yvonne,
    File part-year returns for both states. Make sure you attibute the 401(k) distribution to Georgia.

  795. Zach on Tue, 29th Jan 2013 10:42 pm
  796. NH has no state income tax and I do not own any property so a NH filing is not necessary. What exactly do you mean when you say I will claim a credit in MA for taxes paid (whats on return, not what was withheld)??? Can you clarify this for me??

  797. Amy Miller on Wed, 30th Jan 2013 6:04 am
  798. Jan Roberg, thank you so much for your answers to all these questions! I have learned so much about filling for taxes, but I still have a question for you. I work in Alaska most of the year. When I’m not working in Alaska I work out of Washington. Now, when I work in WA I use my friends address, however, my boyfriend and I have a apartment in Astoria OR where we spend our time off together. My drivers license is in WA, my mail is sent to WA, my phone is in Alaska, I spend 200+ days a year in Alaska but my electric bill is in OR. I don’t want to file in WA if OR is going to flag me, but I don’t want to pay taxes in a state I don’t live in. Where on earth do I file my taxes through?

  799. Lindsey on Wed, 30th Jan 2013 7:50 am
  800. Hi. I have a question about multi state returns. I have always done our taxes myself but I’m having some trouble this year. We have a unique situation. For the past 8 years my husband and I have lived in Kentucky. He worked in Kentucky and I worked in Ohio all of these 8 years. In the past my employer withheld KY tax for me so I never had an issue, plus the two states have an agreement so I only had to file a KY state return. Well in Nov of 2012 we moved into Ohio and we both continued our same jobs. So from this point on we lived in OH with me working in OH and my husband working in KY. So now I am trying to file a part time resident return for both states. I’m very confused as to how to fill these out. All of my husbands income was earned in KY and we lived there up until the end of November. All of my income was earned in Ohio but we lived in KY up until the end of November. This is where I’m getting confused because the form is asking my how much of my income was earned in OH. Well all of it but yet my W2 shows KY for the most part and only a small portion for OH. On my W2 I have a box showing income for KY and taxes paid as well as a box for OH income and taxes paid. My OH income is only a few thousand dollars so I’m assuming that is the income I earned while living in OH for the month of Dec.? My husbands W2 has no mention of OH at all. Can you help me???? I’m so confused. Thanks so much.

  801. Doug on Wed, 30th Jan 2013 5:35 pm
  802. I collected unemployment from MN ( state I live in) for the first couple months of 2012 and when that ran out, I collected from MA since that is where the company I worked for the longest was out of. When I file my taxes and it asks me if I earned income in another state, do I say yes and put MA. Thank you

  803. Jan Roberg on Wed, 30th Jan 2013 8:34 pm
  804. Hi Shashank,
    You are a resident of New Jersey and a non-resident of California. If you do your taxes on 1040.com–right here on my website, it will do both states for you. (Was that a plug? Yes, I believe it was.)

    Anyway, you do pay tax to California–the amount of tax that is paid to California becomes a credit against the taxes you owe to New Jersey. (Of course, since you’ve got withholding in both states–you may have paid in more than you owe and receive a refund.)

    Does your employer pay all of your expenses in California? You may be able to wrtie of some of your unreimbursed expenses out there on a form 2106. It’s worth looking into.

  805. Jan Roberg on Wed, 30th Jan 2013 9:05 pm
  806. Hi Zach,
    My bad–no New Hampshire tax. That makes it easier for you. You just file as a non-resident in the other states. If you lived in a taxing state like Missouri, you’d also have to file a resident state return and pay tax on all of your income from the other states to your home state. But, you could take a credit for the taxes you paid to those states to reduce the tax to your home state.

    Since you will owe no taxes to New Hampshire–you don’t have to worry about the credit. You just pay tax to the states you worked in.

  807. Jennifer on Wed, 30th Jan 2013 9:47 pm
  808. For our state returns how do I file for va since I had no income and he did If he files as a nonresident of va and resident of ny? The only options the software is giving me is married filing jointly and we both had va source income, married filing jointly and my spose had no income from any source and married filing separately. If I do separate it wants to use me not my husband for the va return.

  809. Jennifer on Thu, 31st Jan 2013 1:05 am
  810. How do I keep my husbands va income out of the Ny income return? He had no ny income and I have no va income. I got the va return to give the correct amount by doing a married filing seperately for him but it won’t let me do that for ny as we have that we are ny residents. Also he didn’t really make that much in va so he got all his tax money returned. If his income is included for ny the we get a lower refund. Thanks for all the help!

  811. Lauren on Thu, 31st Jan 2013 3:32 pm
  812. I’m a college student from New York, and my parents have claimed me as a dependent. I go to school in Pennsylvania, and work here. I spent my summer working in Michigan. I haven’t worked or earned any income in NY since 2011.

    If my parents have claimed me as a dependent in NY, do I still have to file anything there, or do I owe NY anything? Can I just file in Michigan and Pennsylvania?

    Thanks!!

  813. Jan Roberg on Thu, 31st Jan 2013 8:18 pm
  814. Hi Amy,
    Wow–that almost seems like a question on a multi-state tax return test. Okay, here’s the big test: Where do you really live? What do you consider to be your home? I’m thinking it’s Oregon. But quite possibly it’s Washington. I’m thinking that you are a non-resident of Alaska in any scenario..

    But here’s the thing–Alaska and Washington have no state income tax. So claiming Oregon as your home state is not to your highest advantage because then you’d have to pay tax on both your Washington and Alaska income. That makes Washington sound like your resident state to me and maybe Oregon is your vacation home. It makes the most sense. Use your Washington address on your federal tax return.

  815. Jan Roberg on Thu, 31st Jan 2013 8:33 pm
  816. Hi Lindsey,
    The reciprocity of Kentucky to Ohio is that same as Ohio to Kentucky. Basically all you’re doing is saying you earned $X while living in Kentucky and $X iwhile living in Ohio. Basically, 11 months of income vs 1 month of income. Everything else should sort itself out.

  817. Jan Roberg on Thu, 31st Jan 2013 9:11 pm
  818. Hi Doug,
    Logic would make you think that you earned the unemployment in MA, but you didn’t. It’s all counted towards your Minnesota tax return. (Yeah, weird.)

  819. Jan Roberg on Thu, 31st Jan 2013 9:28 pm
  820. Jennifer–what software are you using?

  821. Shantell on Fri, 1st Feb 2013 12:40 am
  822. My husband and I live in Texas. My husband works in Texas but for a week he took a job in Oklahoma. It ended up not working out so my question is how do we file the taxes for the check he earned in Oklahoma, do we even have to since it was a $700 check?

  823. Kevin on Fri, 1st Feb 2013 5:39 pm
  824. I live in Massachusetts, but I attend school and work in New York State. (I work at Starbucks if it makes a difference). Even though I work in New York, Starbucks has my address listed in Massachusetts. As a result, all of my payroll taxes are withheld as Massachusetts Income Tax and New York does not withhold taxes from my pay.

    Do I need to file New York taxes if my income tax is already being withheld by Massachusetts?

  825. Jennifer on Fri, 1st Feb 2013 6:21 pm
  826. H&R block free edition

  827. Tara Steele on Fri, 1st Feb 2013 8:44 pm
  828. Hi, I have a question. I received $600 (minus taxes) stipend pay in CA for a two day training and live in MN. I spent 3 days in CA for the training and had MN and Federal taxes withheld from my stipend. Do I file CA taxes?

  829. Jan Roberg on Fri, 1st Feb 2013 9:46 pm
  830. Hi Lauren,
    You’re still technically a resident of NY. You will file as a non-resident of Michigan and Pennsylvania.

  831. Jan Roberg on Fri, 1st Feb 2013 10:20 pm
  832. Hi Shantell,
    Since you made less than $1000, Oklahoma doesn’t require that you file an OK return.

  833. James G. on Sat, 2nd Feb 2013 8:32 am
  834. I am currently a full time student who’s permanent address is in MD but I attend school and now am currently working in FL while in school, which has no state income tax. I was worried about being slammed on my taxes so I had all my FL paychecks deduct MD state taxes. How do I go about filing? And will i get all my of MD taxes that were withheld back because I did not work in MD?

  835. Umesh on Sat, 2nd Feb 2013 8:44 am
  836. Hi

    I stayed first 2 months of the year in Connecticut and then moved to north carolina.
    Am I considered as NC residents and tax withheld for whole year? or should I be paying tax for only 10 months in NC

    Thanks
    Umesh

  837. Jan Roberg on Sat, 2nd Feb 2013 1:31 pm
  838. Hey Kevin,
    If your parents claim you as a dependent, then you have to file in New York if you made over $3000. If they don’t claim you, then you have to file in New York if you made over $7500.
    If you’re making more than that, you should have Starbucks change your withholding.

  839. Jan Roberg on Sat, 2nd Feb 2013 1:33 pm
  840. Hey Jennifer–
    I’d call the 800 number at H&R Block. They should be able to help you walk through the software.

  841. Jan Roberg on Sat, 2nd Feb 2013 1:35 pm
  842. Hi Tara,
    You will not be filing a California return, just Minnesota.

  843. Jan Roberg on Sat, 2nd Feb 2013 2:03 pm
  844. Hey James G.
    Because you are a Maryland resident, your Florida income is taxable in Maryland. You were smart to have Maryland withholding done.

  845. Jan Roberg on Sat, 2nd Feb 2013 2:05 pm
  846. Hi Umesh,
    You are a part-year resident of Connecticutt and a part-year resident of Maryland. If you had no income in Connecticutt, then you would only file a Maryland return. If you had Connecticutt income, then you’ll need to file in Connecticutt also.

  847. Allissa on Sat, 2nd Feb 2013 6:22 pm
  848. Hi! I have a question. So my husband is in the military and I am a student. we lived in Wisconsin, but moved to NC for the military in November. We bought a house in NC but are both still residents of Wisconsin. How should we file? (we havent received any tax forms from our house either, i think because it was bought at the end of the year?)

  849. Jennifer on Sat, 2nd Feb 2013 9:11 pm
  850. I think I figured out. I just had to put his name first as taxpayer and me as spouse. Did him a married filing separately for va (getting all withheld back) and married filing joint for ny. His income in va will be taxed in ny but he didn’t make much and we will get more back than if we each filed separately for ny since he has school credits and we both have loans credits we can receive. Thanks though for your help.

  851. Ann on Sat, 2nd Feb 2013 11:45 pm
  852. I live in NC, but I sold a house in Georgia in March. I had changed my residency from Georgia several years ago, did not work there in 2012, and sold the house at a loss (i.e. I made no income from the sale). Do I need to file a GA return? I am already having to file 2 state returns because I didn’t move to NC until August (residency was SC before that – I’ll file both as part-year resident, I got that part), and I really don’t want to have to do a third but I’m not sure how/where to find out that information.

    Thanks!

  853. Pav on Sun, 3rd Feb 2013 11:53 am
  854. My wife and I were married in 2011, but we are filing jointly for the first time for 2012. For the first half of the year we lived in separate states (RI and OR). Since July we’ve been living together in St Louis, MO, but she’s been working in MO while I’ve been working in IL. I know we have to fill out part year resident taxes for RI and OR, but I believe both states allow us to “file separately” even if we are filing jointly for the federal. If that’s true, and each of us is a non-resident for the other’s original home state, does that person have to fill out a tax form for that state? I have zero income from OR, and she has zero income from RI.

  855. Jan Roberg on Sun, 3rd Feb 2013 1:16 pm
  856. Hi Allissa,
    You are Wisconsin residents. If you have non-military income, you may be required to file an NC tax return. Otherwise–just Wisconsin.

  857. Jan Roberg on Sun, 3rd Feb 2013 1:22 pm
  858. Glad if worked out for you Jennifer.

  859. Jan Roberg on Sun, 3rd Feb 2013 1:33 pm
  860. Hi Ann,
    I’m guessing that you’ll receive paperwork from Georgia showing the sale of the house. Since is wasn’t your primary residence, you’ll want to file a Georgia return just to show them that you didn’t make a profit and that you don’t owe them money. Sorry–but it will save you a headache by filing it now.

  861. Jan Roberg on Sun, 3rd Feb 2013 1:49 pm
  862. Hi Pav,
    if you’re allowed to file as MFS for RI and OR then you don’t have to worry about the non-resident part because you’ll be left off of the return that you don’t need to file.
    If you do file jointly in those states, then the non-resident spouse would be the one with zero income.

    Your bigger problem is going to be with living in Missouri and working in Illinois. Trying to file a part-year return with a credit for tax paid to another state on the Missouri return will through your software into a tizzy. You are probably better off claiming a full year Missouri resident with a credit for taxes paid to Illinois and wherever else you lived. The numbers should essentially turn out the same, but it won’t throw your software into a funk. You might need to do the same with your wife’s income as well.

    Play with it, I haven’t done one for 2013 yet–so maybe that’s a bug that’s been fixed, but I often have to take those an manually prepare them and override the software. Bottom line–if the refund or balance due appears to be “out of whack” it probably is wrong.

  863. Scott on Sun, 3rd Feb 2013 9:53 pm
  864. My wife and I got married in August 2012, and we are filing jointly on our federal return.

    I lived in Illinois from January through May 2012. I moved to Virginia in May 2012.
    My wife lived in Indiana from January through March 2012. She moved to Virginia in March and we both now live and work in Virginia.

    Any suggestions on how to file our state taxes? Will our marriage affect the state returns? We moved prior to our marriage, so I was taxed as a single person in Illinois and she as a single person in Indiana – not sure if this changes anything (e.g., tax rates generally or eligibility for credits for other state income tax)

    Thanks!

  865. Jennifer J on Mon, 4th Feb 2013 11:56 am
  866. Hi, My husband and I are full time MA residents. Last year, for one week, my husband worked in UT and made around $1600. The state tax in UT withheld was $80. Do we have to even file in UT? I did file the 1600 as income for my Massachusetts taxes. Thank you so much for your time.

  867. Matt on Mon, 4th Feb 2013 2:07 pm
  868. We moved from NC to CA this year – but my wife is continuing to work for a NC company. She is working remotely, and hasn’t gone back to NC since we moved in 2012.

    She has had CA tax withheld for the time she has been in NC, and NC tax withheld for the time before that.

    Do we put down on NC return that she was NC Non-Resident but had NC source income, and put the tax we paid CA as a credit against it?

  869. Meg on Mon, 4th Feb 2013 3:18 pm
  870. Hi. I live and work in South Carolina, but my paycheck is coming from the corporate office, located in North Carolina. As such, income taxes were withheld by NC (and NC only on my W2). Do I file a SC income tax form (resident, for both my husband and I), as well as a non-resident NC income tax form? Thanks for any advice leading me in the right direction!

  871. Jim on Mon, 4th Feb 2013 6:45 pm
  872. Jan,

    I live and work in NC. I have prepared my Federal and NC state tax return without any issues. However, I’m having problems with filing two non-resident state tax returns in GA and VA where I own rental properties. When preparing the non-resident returns, the tax software program doesn’t appear to be transferring my deductions for property taxes, mortgage interest and costs to offset some of the income generated from the rental properties in each state. It does transfer my itemized deductions from my Federal return but nothing for the costs associated with the rental property resulting in significant taxes owed in both non resident states.

    When I included the same deductions on my federal return, I had “0″ income to report on my Federal for the properties. Please advise if I’m entitled to these deductions on my state returns. If so, where would I report it if I have to manually make the change.

    I greatly appreciate any help.

    Jim

  873. Brian on Mon, 4th Feb 2013 8:56 pm
  874. Hi Jan,

    I’m filing jointly with my wife. I moved from Ohio to New York at the end of January. My wife stayed behind in Ohio and later moved to New York at the start of April. Then she moved from New York to Wisconsin at the end of August to start grad school where she earns income as a Graduate Assistant.

    The Ohio / New York returns are simple enough, but do I need to file a third part-year resident return for Madison? Anything I should consider to help deal with the strange time overlaps?

    Thank you for your time!

  875. Vance Cotier on Mon, 4th Feb 2013 9:11 pm
  876. Hi Jan,

    I googled my question and found you. Thanks for helping us out.

    I lived in NJ up until Mar 15 2012 with a full time job. I took a new job with the federal government and now live in Yokosuka, Japan. My “Home of Record” is NJ because that’s where they moved me from but this is a permanent move and I have no intention of returning to NJ.

    I’m hoping you tell me I can file as a part year resident as the Navy never took taxes out for NJ when I got here. I read what I could on the NJ site about moving to another state, and military doesn’t apply to me, so can I only report my NJ income for the three months there?

  877. Jan Roberg on Mon, 4th Feb 2013 9:47 pm
  878. Hi Scott,
    You’re just messin’ with me right? This is part of one of those exams on multi-state tax returns isn’t it? Okay–I’m game–

    You are an Illinois part year resident and a Virginia part year resident. You are an Indiana non-resident.

    Your wife is an Indiana part year resident and a part year Virginia resident, and an Illinois non-resident.

    Whew!

  879. Rhonda on Tue, 5th Feb 2013 12:58 am
  880. I worked only in Iowa and received my w2′s from Iowa.I was also a student in Iowa as well. I moved in September to Texas and have not worked in Texas as of yet. I am aware that Texas has no state tax. How would I file for 2013 will I still claim resident of Iowa even though I am no longer a resident of Iowa?

  881. Charolette on Tue, 5th Feb 2013 9:18 am
  882. Scenario:
    A truck driver works for a company based in Texas. The truck driver lives in Texas but delivers goods across the country, Mississippi, Arkansas, Texas, Louisiana, Oklahoma and some of the East Coast states. He is not an independent contractor, he drives a company owned truck.

    Does this truck driver owe state in any of the other states?

    Thanks!

  883. Tony on Tue, 5th Feb 2013 10:07 am
  884. Hey Jan! I’m not sure if this has already been asked because that’s a whole lot of comments to read through. Anyways, here’s my situation:

    I lived in North Carolina from Jan 1st, until June 5th, which then I moved to Washington State for the duration of the year. But here’s the intersting part. I did not denouce my residency in Carolina because I planned on moving back for school in June of 2013

    Just focusing on 2012, I had a Job in North Carolina and I got another job when I moved here to Washington. Washington also, does not do state taxes.

    So I did my taxes through a website and they listed my Washington earnings Under the Federal Adjusted Gross Income (FAGI). I just feel like something is wrong because I’m owing $360 even though I already paied $287 to NC while I was working/living there. My FAGI was $16275, I’m Single and I don’t know what to do. Can you help?

  885. John on Tue, 5th Feb 2013 11:22 am
  886. Hi,

    I lived in Florida and moved to Maryland in Nov 2012. I worked in Maryland half of November and the entire month of December, I have yet to switch my licence/registration over and I live with a friend. Am I considered a non resident or part time resident of Maryland. How should I be filing my taxes.

    Thanks

  887. Matt on Tue, 5th Feb 2013 11:46 am
  888. Hi Jan,

    sorry my previous comment I just noticed said:

    “She has had CA tax withheld for the time she has been in NC, and NC tax withheld for the time before that.”

    What I meant was:

    She has had CA tax withheld for the time she has been in *CA*, and NC tax withheld for the time before that.

  889. Charles on Tue, 5th Feb 2013 2:44 pm
  890. We lived in KY for 8 months of 2012 and moved to FL. We bought a house in FL (only rented in KY). I cannot deduct the mortgage interest, property taxes on the FL house on my KY returns, correct? Also, how do I report interest income or deduct charitable contributions? Are these prorated?

  891. Jan Roberg on Tue, 5th Feb 2013 7:58 pm
  892. Yes Jennifer,
    File a non-resident UT return. They’re pretty strict about that in Utah.

  893. Jan Roberg on Tue, 5th Feb 2013 8:04 pm
  894. Hi Matt,
    You will file as a part-year resident of California and a part-year resident of NC. Even though your wife is working for an NC company, she’s living and working in CA and that’s how you should file.

  895. Jan Roberg on Tue, 5th Feb 2013 8:08 pm
  896. Hi Meg,
    You will file a South Carolina resident return and a NC non-resident return. You will claim that you had no income in NC and request a refund of all the NC taxes withheld.

  897. Adam on Tue, 5th Feb 2013 8:24 pm
  898. I’m an over the road truck driver and I live in Florida. My company I work for is out of Texas. Do I need to file anything for the state that my employer resides in? My wife and I are confused about this because they w-2′s have the address for texas. So does this count as earning income in another state even though I didn’t physically work in texas I drove the 48 states.
    Thank you for your time

  899. Jan Roberg on Tue, 5th Feb 2013 8:32 pm
  900. Hi Jim,
    When you prepare taxes, you have to do the federal first. Then you prepare the non-resident states, and then you prepare the resident state last. I don’t think that’s your problem here–but I want to make sure that’s the order your working in.

    When you’re working on the non-resident returns–are you making sure that the expenses are being moved over to the states? That’s the next thing to check. (Usually there’s a non-resident allocation type page.)

    If neither of those two tips don’t help, I recommend calling the software company and having them walk you though it. If there’s a glitch in the software they’re the ones who can fix it.

  901. Kevin Butler on Tue, 5th Feb 2013 8:44 pm
  902. Hi Jan,

    I hope my question is fairly easy. It may have been already answered but there are quite a few comments on this board.

    In April 2012 I moved from Michigan to Illinois for my job (transfer within the same company). From Jan-April, Michigan income tax was taken out of my check. From April-December, Illinois income tax was taken out of my check. I currently live in Chicago and reside here full time. The only thing is that I kept my driver’s license as a Michigan license as I wasn’t sure how long I would actually live in Illinois (but have switched over almost everything else: bills, loans, bank info, etc).

    From the research I’ve done, it seems that the states take more into account for residency than just your license. So would I just do a “part-time residence” filing for both Michigan and Illinois?

    Any help would be greatly appreciated, as I have always done my taxes the old-fashioned way, by hand.

    Thank you,
    Kevin

  903. Jan Roberg on Tue, 5th Feb 2013 8:53 pm
  904. Hi Brian,
    I would say that your wife is a non-resident of Wisconsin. That should clear things up.

  905. Jan Roberg on Tue, 5th Feb 2013 8:56 pm
  906. Hi Vance,
    Yes, you are a part-year resident of NJ. Since you are not in the military, you won’t be taxed to a state.

  907. Jan Roberg on Tue, 5th Feb 2013 9:13 pm
  908. Hi Rhonda,
    You were a part year resident of Iowa. That’s how you will file.

  909. Jan Roberg on Tue, 5th Feb 2013 9:21 pm
  910. Hi Charolette,
    The truck driver lives and essentially works in Texas even though he’s driving all over the country. Since there is no Texas state income tax, he only files a federal return.

  911. Jan Roberg on Tue, 5th Feb 2013 9:28 pm
  912. Hi Tony,
    Your Washington income gets reported on your federal tax return. Just because Washington doesn’t have an income tax doesn’t mean that the federal government won’t tax the income.

    Also, you should claim that you are a part-year resident of NC. If your claim that you are a full year resident of NC then NC will tax all of your Washington state income as well.

    You don’t have to “renounce” your NC residency. You’re just claiming that you were a part year resident. You’ll become a tax year resident again when you move back.

  913. Jan Roberg on Tue, 5th Feb 2013 9:31 pm
  914. Hi John,
    You are a part year resident of Maryland.

  915. Megan on Wed, 6th Feb 2013 2:14 pm
  916. Hi. Thank you for taking the time to answer all these questions! I recently moved from PA to CO. I paid estimated taxes in PA and should get a refund of about $2. I have already filed my federal taxes. How should I go about filing the two state taxes? Both as part year residence? PA then CO? I don’t fully understand the state credit issue. Thank you in advance!!!!

  917. alex on Thu, 7th Feb 2013 11:16 am
  918. i am a resident of CA, but i work in VA…

    we own a home and my family is living in CA. my wife is not working, she has no income.

    my work start taking a VA tax from my paycheck…

    i use turbo tax to do my taxes… and this is what i came up with… pls tell me if this is correct… I have to pay CA $3.808.00. and i have a refund from VA $5,465.00 (tax withheld was $6,890.00)… how come im not getting all of the money that i paid VA?

  919. Jan Roberg on Thu, 7th Feb 2013 3:06 pm
  920. Hi Charles,
    While you allocate your income between your different states, your deductions are not allocated. Just input the numbers into your federal return and they will carry to the right place.

  921. Katie on Thu, 7th Feb 2013 3:35 pm
  922. Jan,
    Thank you in advance for your response! My husband is in the military and is stationed in Georgia. We both have a residence in Ohio. I lived with him in Georgia from Oct. 2011 till Aug 2012 in Georgia where I worked and moved back to Ohio for the remainder of 2012 and also worked. My question is whether I need to file for Georgia taxes or not given the MSRRA. Everything just talks about my state of residency and the relief act for spouses, but nothing seems to answer my questions about if I need to “file” Georgia taxes or not. I guess I just don’t understand the lingo.

  923. Jan Roberg on Thu, 7th Feb 2013 8:24 pm
  924. Hi Adam,
    Texas or Florida, it doesn’t matter, neither state has an income tax. Technically your W2 should say Florida, but it won’t make a difference for you.

  925. Jan Roberg on Thu, 7th Feb 2013 8:26 pm
  926. Hi Kevin,
    You will file a part year return for Michigan and for Illinois. You’re right.

  927. Jan Roberg on Thu, 7th Feb 2013 8:28 pm
  928. Hi Megan,
    Part year PA and part year CO. You don’t have to deal with credit for taxes paid to another state. :)

  929. Jan Roberg on Thu, 7th Feb 2013 8:33 pm
  930. Katie,
    Thank you for your service to our country. Trust me, as a spouse your service is just as important as your husband!
    Generally you file a return, but you claim the income isn’t taxable because of the MSRRA. The returns will all be a little different but that’s basically the way it works. Many bases will provide free tax help to walk you through it.

  931. Jennifer on Thu, 7th Feb 2013 8:47 pm
  932. Hey Jan,

    Thanks for your help! I was a college student in SC, graduated in May 2012, and then moved to GA for full-time employment. While at school in SC, I received a significant amount of scholarships and have reported the scholarships earned minus educational expenses as earned income. While this appears to show correctly on my federal return using TurboTax, it keeps getting applied to my GA state return instead of SC return. I know that the taxes should be paid to SC b/c I was a resident of SC while at school but cannot seem to figure out how to move the “scholarship income” from GA to SC. Any ideas?

    Also, for the federal return, the deductions, like charity donations, are easily applied. When filing for each state, however, do i have to prorate the deductions or does turbo tax automatically apply the deductions for me for each state return? I guess I am just confused as to whether or not I have to “manually” enter deductions into the addition/subtraction adjustments tab in TurboTax for each state return.

    Thank you again for all of your help! This is the first time I have ever had to file taxes as a “real” adult so I am sooooooo confused. AHHHH!!!!

  933. Shannon on Fri, 8th Feb 2013 1:45 pm
  934. I’m helping my 20 year old niece with her taxes. In 2012 she didn’t live in IL but for a couple weeks here and there when she was at her IL “home.” For the first 6 months, she lived all over while working for the AmeriCorps. Her wages are CO source with CO withholding. After briefly vactioning back in IL (during the summer) at her mother’s house (which she had been kicked out of in 2011-long story), she went back to CO to start college and lives on campus. She did keep some personal belongings in IL at her grandma’s house and used her IL address to recieve some mail. I’m under the impression that usually students’ permanent homes are with their parents and if they have wages when working out of state while at college they would file a N/R return. So in this case my niece would file a N/R CO return. However, in reality she was pretty transient and didn’t spend much time in IL at all. And she’s trying to build a CO residency case for in state tuition. What would you advise she files?

  935. GAIL on Fri, 8th Feb 2013 8:34 pm
  936. Jan, I ‘m a resident of Florida and worked for a company based in IL. I received a W-2 from them reporting IL income and IL withholding. I never worked in IL during the year as the work was done in Florida. Is there a place on the IL return where I can reflect this and get my IL withholding back? Thanks!

  937. Timothy on Sat, 9th Feb 2013 9:09 am
  938. Jan,

    I’m in an interesting situation. I am a military member stationed in VA with a NY residence. My wife is a Japanese national whom works in VA. When I do my taxes I prepare Federal, NY, and VA. NY is always zero… But with the VA taxes it figueres our combined income in determaining the rate and I’m always paying… Am I doing this correctly or am I missing something?

    TJ

  939. Cait on Sat, 9th Feb 2013 11:01 am
  940. Hi Jan:

    I’m doing my state taxes, and am utterly confused. I hold a Pennsylvania drivers license, but only visit PA for short periods — vacation and holidays. I live, work, and attend college in Massachusetts. Do I need to file both MA and PA returns, claiming the MA withholding taxes as a credit in PA? Or can I just forget about the PA return, and file in MA only.

    Any guidance you can provide would be great!

    Thanks

    Cait

  941. Mario on Sat, 9th Feb 2013 5:50 pm
  942. My wife worked in MD (July 2011 to October 2012).
    MD employers (One withheld CA State Tax the other MD State Taxes)
    Employer now out of business and did not reimburse her $5000 travel expenses.
    I stayed in CA because her contract was for one year and were not sure if it would be extended, as it turned out it was not. We have a home in CA and I worked in CA.
    Can we write off the unreimbursed expenses?
    How do we file the State?

    Thank you so much for your help.

  943. Kara on Sun, 10th Feb 2013 12:18 am
  944. My husband and I got married June 1, 2012. We lived separately until we got married; I in Indiana and he in Ohio. We both worked in our respective states. He quit working in Ohio when we got married and got a job in Indiana. He also took out his 401K and payed off any debts he had to make sure we had very few debts going into our marriage. My question is how do we file our taxes? I have 2 children from a previous marriage which I claim.

  945. Mickey on Sun, 10th Feb 2013 10:20 am
  946. I’m a student in Michigan but I lived in Texas over the summer and made the majority of this year’s income while I worked and lived there. I also kept working for one of the companies when I came back up to Michigan over the holidays. Do I file a part-year resident return for Michigan? And do I even need to do one for Texas (since they don’t have a state tax)? Does it matter what date I “moved” back from Michigan? (I’m using TurboTax)

  947. Never Moving Again on Sun, 10th Feb 2013 3:23 pm
  948. Hi Jan,

    I stumbled onto your page while investigating my tax situation and it has been extremely helpful. I have a unique situation. I lived and worked in California through February. In February I left California for Illinois and maintained my relationship with my employer. I worked for an employer in Illinois and held the California job remotely from IL. In June I left Illinois for Massachusetts. In Massachusetts I only worked for one employer, but technically I received a vacation payout from my California employer during my residency period (do I need to account for this)

    My guess is the following:
    California Part Year Resident with Credit for taxes paid while in Illinois.
    Illinois Part Year Resident reflecting income from CA W2 for the time spent in IL and IL W2
    Massachusetts Part Year Resident for MA job (and perhaps CA payout?)

    Am I on the right track?

  949. Nancy on Sun, 10th Feb 2013 5:35 pm
  950. Hi, I have a somewhat complicated situation and would like advice on whether I should file as a part-year resident in NJ and in IL. I was attending grad school full time in NC for the first 5 months in 2012 and then moved to NJ for work for the reminder of the year. However, for the 2011 tax return I filed as an Illinois resident since I never acquired NC residence status while I was in school (from Jul ’10 – May -12). Prior to school I was a resident of IL for many years. Now that I live in NJ and all of my wages came from NJ in 2012, I’ve filed a part-year resident NJ tax return. Should I file an IL part-year resident tax return as well? Or NC?

    Thanks for your help.

  951. Jan Roberg on Sun, 10th Feb 2013 9:09 pm
  952. Hi Jennifer,
    Don’t worry about prorating your charities, the program will handle the schedule A deductions for you.
    You’ll want to go into the part year or non-resident pages of the tax return and manually allocate the income. That should solve your problem.

  953. Jan Roberg on Sun, 10th Feb 2013 9:10 pm
  954. Hi Shannon,
    I’d have your niece file as a Colorado resident.

  955. Jan Roberg on Sun, 10th Feb 2013 9:11 pm
  956. Hi Gail,
    file as an Illinois resident and then where you allocate the income you put $0 earned in Illinois. That should get you your Illinois withholding back.

  957. Jan Roberg on Sun, 10th Feb 2013 9:13 pm
  958. Hi Timothy,
    Did you remember to claim your wife’s exemption from tax as a military spouse? And the other thing would be, did you have non-military income? If you had non-military income, that would be taxable to VA.

  959. Jan Roberg on Sun, 10th Feb 2013 9:14 pm
  960. Hi Cait,
    If you live, work, and attend school in Massachusetts, then you should file a Mass tax return. Why don’t you switch you license?

  961. Jan Roberg on Sun, 10th Feb 2013 9:16 pm
  962. Hi Mario,
    you file as California residents and MD non-residents. Do claim the unreimbursed business expenses as a deduction.

  963. Jan Roberg on Sun, 10th Feb 2013 9:18 pm
  964. Hi Kara,
    You are married filing jointly. You are a full year resident of Indiana. He is a part year resident of Indiana and a part year resident of Ohio.

  965. Jan Roberg on Sun, 10th Feb 2013 9:20 pm
  966. Hi Mickey,
    it sounds like you are a Michigan resident with a temporary non-resident job in Texas. You will file a Michigan return and pay tax on all the money you earned in Texas.
    At least, I believe that Michigan is your home state so that’s how I’d file.

  967. Jan Roberg on Sun, 10th Feb 2013 9:22 pm
  968. Dear Never Moving Again,
    Been there, done that, got the T-shirt. Yes, you’re absolutely right. (Never say never–you’ll get stuck moving again. :) )

  969. Jan Roberg on Sun, 10th Feb 2013 9:25 pm
  970. Hi Nancy,
    since you live in New Jersey and all of you income is from there, why don’t you just file a full year resident return there? You wouldn’t be reporting any income to Illinois anyway. I’m not sure why you’d be filing an Illinois return?

  971. Katie on Mon, 11th Feb 2013 8:54 am
  972. Hi Jan, My husband and I moved mid-2012. We spent the first part of the year in KY, then moved to MO. During the time we lived in MO, my husband worked in KS (I did not work while living in MO, so this is only for his income). I believe I have my KY part-year resident and KS non-resident returns correct, but using two different online tax programs, the MO part-year resident return continues to come up with us owing nearly as much to MO as to KS. Am I correct in assuming that we should owe very little, if anything to MO? (Seems the MO tax should only be calculated on the portion of our income that was earned while living in MO, and the tax paid to KS should be credited on the MO return, resulting in no MO tax bill) Am I misunderstanding? Do these online systems have the ability to properly handle a situation like this? Thanks!

  973. Gary Ludorf on Mon, 11th Feb 2013 8:32 pm
  974. Hi Jan,

    My daughter lives in Massachusetts where she also goes to college 9 months out of the year. During the summer she works for a financial firm in NYC. Then she returns to Massachusetts to go back to school in the Fall.
    Last summer she made a total of $21,000 working for the financial firm in NYC. The financial firm has told her they will give her a W2 for Massachusetts showing $5,000 in income and a small amount in withholding to Massachusetts; plus a 2nd W2 for NY showing the whole $21,000 and the withheld taxes paid to NY. Therefore according to the W2s she will get taxed twice on the $5,000. (The $5,000 was a signing bonus, part of the $21,000). How do I keep her from getting double taxed? Thank you!

  975. Shannon on Tue, 12th Feb 2013 12:38 am
  976. Hi Jan,
    I apologize if you’ve already answered this. I lived in MA until April 15th I then moved to VT and stayed within the same company. My payroll office didnt change my address until mid-June so I was taxed in both MA and VT for around 4 pay periods. The payroll office just told me oops, too late for them to remedy it. Do I just guess at what portion was truly MA tax and which was VT? I also have a commission based job so it’s not as easy as counting days! Thanks for the help!
    Shannon

  977. JENNIFER on Tue, 12th Feb 2013 9:25 am
  978. My husband is in the military stationed in VA. His home of record is PA. I am a full time resident of VA with my own W2. We have three kids together. How do we file? I’ve tried filing as married filing jointly and the federal will let me do it but state says we have to do married filing separate. Can we still file our federal as joint and then do state as separate? I’m confused and don’t know how to file. Thanks so much for your help.

  979. Missy on Tue, 12th Feb 2013 9:26 am
  980. Hi Jan,

    Thanks for the wonderful site, it’s been really helpful. I have a couple of questions and hoping you could shed a light. My husband and I got married in the mid 2012, but we continue living and working in a separate state. I work and live in MN for the entire 2012, while he works and lives in AZ for the entire 2012. I am able to figure out the federal tax refund, trying both filling jointly and separately.

    Now for MN state, it requires to have the same status as federal, so I tried calculating both scenarios too.
    1. Trying to fill jointly, I use the non-resident schedule to figure out the MN income only. Is this correct?
    2. Trying to fill separately, I am thinking only I will need to fill it, because all my income comes from the state. While my husband doesn’t need to fill anything since he never lives and works in MN. Is this also correct?

    For AZ state, I’m really thrown into confusion because AZ is a community property. But I read the rules that you can have a different filling status than your federal.
    1. Trying to fill jointly, I believe we can use the part year resident form, though I haven’t got a chance to try this.
    2. Trying to fill separately, do I also have to fill for AZ? Technically I never receive any income from there. But all the examples out there show that I need to fill for 50% of my husband income, while my husband also fill only for 50% of his income. Is this correct? Or can my husband to fill for 100% of his income and I don’t have to fill anything for AZ?
    3. If I also have to fill even though I don’t work and live there, how do we determine the community wage as well as the community interest? Prorate it into days and calculate for the number of days we are married in 2012?

    Thanks for all the help!

  981. Lisa Kapoor on Tue, 12th Feb 2013 1:55 pm
  982. My 22-year-old daughter is a full time student in Utah, where she resided for 50 of the 52 months of 2012 (her college has quarters, so they go to school 12 months a year). She still has a license in Vermont and is registered to vote in Vermont. She has income from selling her art. Should she claim residency in Vermont (listing income from another state) and claim part-time residency in Utah? Would selling art (since it is not from a licensed business in Utah) be considered income from Vermont?

  983. John on Tue, 12th Feb 2013 2:53 pm
  984. Wow, your blog is extremely helpful. Currently my wife and I (and three kids) both live and work in NC. I’m considering taking a job in VA that is too far to commute so if I do, I’ll need to get an apartment in VA and come home on the weekends. How should we file in this situation?

  985. Kathy on Wed, 13th Feb 2013 11:18 am
  986. hello,
    I have been doing our taxes for years, but for some reason i am having a hard time doing ours this year. My husband travels for work, he lives out of our camper while doing so, he has worked in michicagan for 1 month and the rest of the time in illinois, but me and the kids live in our home in wisconsin. How do i claim per diem and do i file as a full time resident of wisconsin since he never changed his drivers license or anything? for the michigan job they were taking out illinois taxes, and now it shows we owe wisconsin ALOT, and we also owe ILL and Ohio..Help if you can? thanks Kathy

  987. Kathy on Wed, 13th Feb 2013 11:20 am
  988. sorry he also worked in ohio for a short period of time. Kathy W

  989. Dustin on Wed, 13th Feb 2013 2:29 pm
  990. Hi, I lived the entire year of 2012 in california, but owned a home in wisconsin where my wife and kids stayed. Though we planned to have a place in california for all of us together sooner it didnt work out this year.

    1. What state am i resident of if my wife and kids still lived in our home in wisconsin but i lived and worked the entire year in california?

    2. I paid taxes to the state of california, is this correct?

    3. Can we still file married/jointly?

  991. Eilyn on Wed, 13th Feb 2013 2:37 pm
  992. Hey.
    I am freaking out right now when my tax guy called me saying i owed almost 2000$ to the state of maryland.
    I am from Florida i worked in florida till july 2012.
    Moved to Maryland in July 2012.
    I took out my 401k from my florida job in order to make ends meet in Maryland seeing as i had to move right away.
    I was taxed on my withdrawl when it was disbursed to me.
    My tax guy calls me today and says i wont be getting any money in reality because i owe maryland money.
    This does not seem correct at all. I am freaking out and extremely depressed.

  993. Amy on Wed, 13th Feb 2013 6:38 pm
  994. I was an oregon resident and worked in oregon moved to california in December but made no california wages. Do I still need to file a california return? I own no houses.

  995. Jan Roberg on Wed, 13th Feb 2013 9:43 pm
  996. Hi Katie,
    The systems don’t work when you have a part year and a credit for tax paid to another state. Even I have to do those by hand.

    Try this and see if you get a better answer: do Missouri as your homes state and claim both Kentucky and Kansas for a credit to taxes paid to another state. That should be better.

  997. Jennifer on Thu, 14th Feb 2013 1:38 pm
  998. Hi Jan, You are a very nice person to do this for us. I am a resident in TN. I work in NC. NC is with-holding state taxes from my pay check. Should I stop paying NC state taxes because I do not live in NC? Should I file a NC state tax refund to get all the state taxes back? Should I change my W-4 to stop NC from withholding state taxes because I am not a resident of NC?

  999. Jan Roberg on Thu, 14th Feb 2013 8:33 pm
  1000. Hi Gary,
    Your daughter will file as a resident of Massachusetts and a non-resident of New York. She will receive a credit in Massachusetts for the taxes that she pays to New York.

  1001. Jan Roberg on Thu, 14th Feb 2013 8:35 pm
  1002. Hi Shannon,
    You don’t have to guess at the tax–that’s why you figure out the tax return–that’s what figures the tax. You job is to figure what income was earned where. You’ll get refunded for what was overpaid.
    You say that since you were paid commissions–you can’t just count days. But you can go back and check your paychecks to figure your income and relate it to where you worked.

  1003. Jan Roberg on Thu, 14th Feb 2013 8:47 pm
  1004. Hey Jennifer,
    I hate to answer a question with a question but as a military spouse it’s possible that your residency could be PA also and your income could be protected from state tax under the military spouse rule. Just thought I’d bring that up.

  1005. Jan Roberg on Thu, 14th Feb 2013 8:54 pm
  1006. Hi Missy,
    You’ve got quite a challenge there. Because of the whole community property state issue you will be reporting your income to Arizona. I’d spend the money and have a professional do your return.

  1007. Jan Roberg on Thu, 14th Feb 2013 8:57 pm
  1008. Hi Lisa,
    If you plan on claiming your daughter as a dependent on your tax return, then she will need to be a Vermont resident and a Utah non-resident.

  1009. Jan Roberg on Thu, 14th Feb 2013 9:00 pm
  1010. Hi John,
    Depending upon how the job goes, you’ll probably claim VA as a non-resident at first. If the job takes hold and you stay there, you will be filing as a VA resident and your wife will be a VA non-resident, and she will be a NC resident and you will be a NC non-resident. I have friends who filed that way for years.

  1011. patty on Fri, 15th Feb 2013 4:58 am
  1012. We live in NY state. My son goes to college in NY state (and lives on campus) where he has a small amount of earned income as well as some unearned income from savings/investments. This past summer he had a summer job in Seattle WA at which he earned a substantial sum. He lived in a furnished apartment for the summer partially subsidized by his employer. Does he file a part-year resident retun both in NY and in WA, or a full-year resident form in NY and a non-resident return in WA? Or some other permutation?

  1013. Tabatha on Fri, 15th Feb 2013 12:03 pm
  1014. Hello,
    My husband worked in two states (Illinois and Alabama) for the same company. He worked 2 months in Illinois and the rest in Alabama. While living in Illinois he lived in a hotel, so the company put his permanent address down as his previous home in Michigan. Now he has 2 w-2s from his company, one from MI and one from AL, do we file part residents in MI/AL or do we need to worry about Illinois?

  1015. Mike on Fri, 15th Feb 2013 2:33 pm
  1016. Hi Jan,
    Thanks for the great site, it’s been really helpful. I have some questions about state taxes and was hoping you could shed some light on the unique situation. My daughter was a full time graduate student at the University of Illinois, the Champaign campus, during all of 2012 but interned during her summer break for a company located in Tennessee while renting in Alabama for 2.5 months. She maintained an apartment in Illinois for the complete 2012 year. She also worked part time for the University of IL ( less the summer break) with a dollar income split of about 54/46% ( Internship vs. Uof I ) for all 2012 income. The company where she summer interned paid Alabama State Tax only. How should the Alabama State Tax be handled? ( Non -resident or part time resident?)
    Thank you in advance!

  1017. Ashesh on Sat, 16th Feb 2013 9:08 am
  1018. Hi Jan,
    Thank you for your helpful post! I was living and working in NYC until October 1st of 2012, following which I moved to Boston. I am still getting paid by my employer in NYC and will continue to do so (I don’t have any Massachusetts sourced income). Does this mean that I file my taxes as a part year resident of New York and NYC, and part year resident of Mass? Also, can I then claim an exemption for taxes paid in those 3 months to Mass on my NY and NYC tax return?
    Thanks for your help!

  1019. John on Sat, 16th Feb 2013 4:12 pm
  1020. Hi Jan,

    In 2011, I left a job in TX and moved to MA. At the time I was vested in a bonus plan that was to pay out in 2012, which it did. Federal taxes were taken out of the payout, but no MA state taxes. Because I earned the bonus when I was living in TX but it was paid out when I was living in MA, do I need to include this income on my MA state tax return?

    Thank you.
    John

  1021. Theresa on Sat, 16th Feb 2013 5:04 pm
  1022. I have been a resident of Florida for the past 10 years. I just recently moved to NYC in November 2012. How do I go about filing my taxes if I use Turbo Tax online?

    Also, I bought a used vehicle in April of 2012. When I found out I was moving to NYC, I ended up selling it in November of 2012 and taking a $6000 loss. Can I file this as a capital loss on my taxes for 2012?

    Thanks!

  1023. Aamir on Sun, 17th Feb 2013 1:55 am
  1024. Hi Jan,

    First off thanks for all the advice you’ve given. Its helped me tremendously.

    My wife and I got married in 2012. I was working in CA for all of 2012. My wife worked partially in MA, and partially in CA.

    I already filed federal and CA jointly. Now Im afraid I did something wrong. For CA I just plugged in our W2 numbers and let the tax software do the rest. I am struggling with how to approach MA. Should I file my wife as ‘married but file separately’? Our tax software is not allowing us to have separate residence status for MA so Im a bit stuck.

    Thanks

  1025. Jan Roberg on Sun, 17th Feb 2013 4:46 pm
  1026. Hi Kathy,
    I’m thinking you’re missing the credits for taxes paid to another state. You are a resident of Wisconsin. So is your husband. He is a non-resident of Michigan and Illinois (and Ohio I guess.)
    Because you’ve got mulitple states, sometimes the computer software doesn’t always carry all the right numbers forward. You’ll want to double check your work by hand.
    Claiming per diem expenses would be for temporary job assignments–which I think your husband might qualify for. You can look up the CONUS per diem rates here: http://www.gsa.gov/portal/category/100120

  1027. Jan Roberg on Sun, 17th Feb 2013 4:47 pm
  1028. Hi Dustin,
    You were a resident of Wisconsin and a non-resident of California for 2012.

  1029. Jan Roberg on Sun, 17th Feb 2013 4:51 pm
  1030. Hi Eilyn,
    Here’s the thing that jumps at me. Did you take the money from your 401(k) while you were still living in Florida or did you take it out after you moved to Maryland? The big deal is that when you take money from a 401(k) it is taxed to your resident state at the time you took it out. So, if you were already in Maryland, it’s taxed to Maryland. If in Florida–taxed to Florida (which has no taxes.)

  1031. Jan Roberg on Sun, 17th Feb 2013 4:52 pm
  1032. Hi Amy,
    You won’t need to file a California tax return. You may get a letter from them asking why you didn’t file–and that will be because you moved to California but hadn’t earned any income there yet.

  1033. Jan Roberg on Sun, 17th Feb 2013 4:54 pm
  1034. Hi Jennifer,
    Even though Tennesee doesn’t tax income, North Carolina does, and since you work in NC, you will have to pay the NC tax. Sorry.

  1035. Jan Roberg on Sun, 17th Feb 2013 4:57 pm
  1036. Hi Patty,
    Your son will file a non-resident return for Washington (which has no state income tax) and a resident return for New York.

    I see the desire to make him a part-year resident of Washington.

    One thing–because he was in Washington on a temporary assignment–you might be able to claim his per diem expenses–less of course what his employer paid for his lodging. It’s worth a try anyway.

  1037. Jan Roberg on Sun, 17th Feb 2013 5:00 pm
  1038. Hi Tabatha,
    I think you’ll need to file an Illinois non-resident return since your husband did work there for awhile.

  1039. Jan Roberg on Sun, 17th Feb 2013 5:01 pm
  1040. Hi Mike,
    your daughter should claim the Alabama income as a non-resident.

  1041. Jan Roberg on Sun, 17th Feb 2013 5:05 pm
  1042. Hi Ashesh,
    You will file part time for New York and part time for Massachusetts. There will be no credits for taxes paid to another state because you’re using the part year allocations.

  1043. Jan Roberg on Sun, 17th Feb 2013 5:14 pm
  1044. Hi John,
    the income for the bonus was earned in Texas. Unlike unearned income like interest and dividends which are taxed to the state you live in, earned income is taxed to the state you earned it in. So–you earned the bonus in Texas, even though it wasn’t paid until you moved to MA.

    But here’s your problem–normally, you’d pay the tax to the state you earned it in and then just take a credit for taxes paid to the other state. But because it’s Texas, there’s no tax paid and you get no credit–so, I’m sorry but you’re going to still get stuck paying tax on the bonues to MA. That really doesn’t seem fair, but that’s the way it works. Sorry.

  1045. Mary on Sun, 17th Feb 2013 7:15 pm
  1046. My daughter graduated from an Ohio college in May. No income there. Moved home to Virginia and worked one job for one month in DC, then a second job in VA until September. In October she moved to Chicago for a job. 3 W2′s, federal return is complete but we do not know how to file the state returns. Thank you!

  1047. Britain on Sun, 17th Feb 2013 7:34 pm
  1048. I have been doing my taxes myself for several years now but this year I am in a bit of a weird situation. In 2010, I moved to Cyprus (EU). October of 2012, I moved back to the US. I am a US Citizen and I moved to GA. I started working here in November. I was able to use the foreign income exclusion on my federal to exclude money made in Cyprus and am trying to do my part-year GA return. On the GA return, it asks me to list my income info for income not taxable by Georgia then it asks, “List the state(s) in which the income in Column B was earned and/or to which it was reported.” Do I write in Cyprus? Do I write N/A? Do I leave it blank?

  1049. Eric on Sun, 17th Feb 2013 9:53 pm
  1050. I live in Alaska which doesn’t have a state income tax but worked in California for most of 2012. Do I get all my taxes paid returned form California? I did my return on Turbo Tax and it says I get about a 1/3 of the taxes back.

  1051. Sirena Brownlee on Mon, 18th Feb 2013 12:14 am
  1052. Hi Jan,

    I am a current resident of Anchorage, Alaska but I am moving down to Colorado in a few weeks. The company I work for has an office on Fort Collins, Colorado where I will be working out of. However, I will remain an Alaska department employee and be paid from our Alaska office but residing in colorado. Since Alaska has no state tax I was hoping that perhaps I would not need to pay Colorado state tax.

    Thank you very much!
    Sirena

  1053. Jack Bebbitt on Mon, 18th Feb 2013 9:36 pm
  1054. Hi Jan,

    I am an alarm salesman who is a resident of Utah, but spends 6 months out of the year selling in California, Arizona, and Texas. Since I’m 1099, I’m curious to where I would file state income taxes. Would it be the states where I travel? The state where I live? Both?

    Thanks!

  1055. Lesley Westbrook on Tue, 19th Feb 2013 12:22 pm
  1056. Hello,

    My husband and I are non-residents of Oklahoma. We reside in Texas. He was sent by his company to work in OK on a project. On his W2, it shows how much he earned in OK, $4,760, and the state taxes deducted, and the rest from TX with no state taxes deducted. On the other side of the OK tax form, you may deduct your Federal itemized deductions, and they show only $1000 allowed for exemptions for OK, rather than what is used for the Federal exemptions per person. Naturally this is going to make a larger amount to be taken into consideration for taxes owed. Anyway, why must you use your entire amount earned for the adjusted gross when he only earned $4760 in OK? With the Federal tax return, we will be getting an amount back. With OK, we will owe. It makes no sense whatsoever.

    I would certainly appreciate your help in trying to understand their form.

    Thank you so much.

  1057. Andrea on Tue, 19th Feb 2013 11:11 pm
  1058. Good evening… I lived in California for 33 days in 2012 before moving to Oregon. I receive a Federal Surviors Annuity and Social Security. No state tax from either income was withheld from either state. Which state tax should I file? Any info will be appreciated….. Thank you in advance.

  1059. Adam on Wed, 20th Feb 2013 5:54 pm
  1060. I used to live in NE and had a job there. Then I moved to CA on oct 2012 but have not earned any money and I am still living in CA. DO I need to file a state return for CA ?

  1061. cindy on Thu, 21st Feb 2013 12:39 pm
  1062. Hello Jan,
    I and my husband lives in GA. I am living in GA with 2 kids while my husband is working in CA. I didn’t make any income in 2012 except couple hundreds of dividend. My husband paid taxes to Ca and he also received dividends and he had some stock transactions (a loss). I am trying to figure out how to allocate income/dividend to Ga and CA. Should i file full year resident fo Ga, non resident for CA or GA full year resident for me/non resident for my husband and vice versa for CA? Thank you so much

  1063. Amy on Thu, 21st Feb 2013 11:59 pm
  1064. I’m having trouble with my state efiling being rejected for the first time. I’m a graduate student in MA, but I maintain my VA residency. Last year, I worked for the university during the spring and fall semesters, but went back to VA to live for the summer (where I did not work, so earned $0). My online filing doesn’t allow you to show that you moved out of a state and back to it in the same year, which is maybe why it is rejecting my return? What do I do?

    Thanks so much.

  1065. Jan Roberg on Sat, 23rd Feb 2013 5:07 pm
  1066. Hi Theresa,
    First, if you want advice about how to file with Turbo Tax, you need to call Turbo Tax. On the other hand, you my try using my link to 1040.com. Sorry, but Turbo Tax doesn’t pay me.
    Now, what you will want to do is file a part year resident return for NY so that you don’t pay them tax for all the income you earned while in Florida.
    About selling your car–if it was for personal use–you cannot claim a capital loss on personal property. Sorry.

  1067. Jan Roberg on Sat, 23rd Feb 2013 5:09 pm
  1068. Hi Aamir,
    Massachusets will let you file separately even though you filed jointly on your federal.

  1069. Jan Roberg on Sat, 23rd Feb 2013 5:12 pm
  1070. Hi Mary,
    Probably the easiest thing to do would be to file as an Illinois resident and a VA and DC non-resident. Because she worked the other jobs for such a short time, check the non-resident filing requirements to see if she even has to file.
    If she does, make sure she claims a credit for taxes paid to other states on her Illinois return.

  1071. Jan Roberg on Sat, 23rd Feb 2013 5:14 pm
  1072. Hi Britain,
    Usually the software allows a “non-state” option. If yours doesn’t, you may need to manually prepare the return and list “out of country”.

  1073. Jan Roberg on Sat, 23rd Feb 2013 5:15 pm
  1074. Hi Eric,
    The work that you performed in California is taxed in California. You won’t get all of your withholding back.

  1075. Jan Roberg on Sat, 23rd Feb 2013 5:17 pm
  1076. Hi Sirena,
    If you are moving to Colorado, you will pay Colorado taxes. If you are temporarily locating to Colorado–you will pay Colorado taxes for the time you are working there. Sorry.

  1077. Jan Roberg on Sat, 23rd Feb 2013 5:20 pm
  1078. Hi Jack,
    Generally, if you’e issued a 1099–then you’re considered to be self employed and your company is in Utah because that’s where you live. Now you travel to those other states, but I suspect that your travels are of a temporary nature and you’re always home by the end of the week in Utah. Is that right?
    If yes, then I’d just file a Utah tax return. If you actually work and stay in these other places for like a month or so–then you’ll need to file other state returns. But most sales folks are on the go so much they’re not in any one place long enough to be doing tax returns for the states they travel to.

  1079. Jan Roberg on Sat, 23rd Feb 2013 5:23 pm
  1080. Hi Andrea,
    Technically you were a California resident for 33 days and an Oregon resident for the rest of the time.
    Social security and pensions and annuities are taxed to the state you lived in at the time you received the payment. So you would file part year returns for each state and attribute the income you receive the the state you were in at the time you received. it.

  1081. Jan Roberg on Sat, 23rd Feb 2013 5:24 pm
  1082. Adam,
    You don’t need to file a tax return for California. You will probably get a letter from them asking why you didn’t file. You’ll just explain that you had no taxable income in CA during 2012 (if you get a letter.)

  1083. Jan Roberg on Sat, 23rd Feb 2013 5:31 pm
  1084. Hi Cindy,
    California will be taxing your income too. Be aware of that. Technically you are a resident of GA and your husband is a resident of CA. But California rules will count your income as taxable as well. Be very careful filling out the forms. Read the lines exactly as how they are written–because the California return means exactly what it says which isn’t the way many other states handle taxes. (What I mean is–don’t just assume the answer should be X because that’s what makes sense–California tax rules are different.)

    Because you have children, you’ll still want to file jointly (better tax status). Since your income was very low, it shouldn’t hurt you too much with the California return. It’s just something to watch out for.

  1085. Jan Roberg on Sat, 23rd Feb 2013 5:34 pm
  1086. Hi Amy,
    Since you made no money in VA, then don’t show the in and out. Either you’re just a VA resident and MA non-resident–or since you had no VA income, just a Massachusetts resident for tax purposes.

  1087. cindy on Sun, 24th Feb 2013 10:05 am
  1088. Hi Jan,

    So what you are saying is that I should file full year resident for GA/non-resident for CA and my husband full year for CA/ and non-resident for GA right? Can I just file GA full year resident for me and my husband and then allocate only his w-2 income to CA and pay the rest of other income such as dividend, interest for state of GA? What is the best way to do this?
    Thanks

  1089. Sharon on Sun, 24th Feb 2013 10:23 pm
  1090. My son is a college student in NC. We live in Georgia. He works for the college as a Resident assistance and makes an income while at college. In the summer he works here in Georgia. We file him as a dependent on our taxes and he files his own taxes also. He does not claim himself on his taxes. This is the first year he has had an income in NC since going to college. I don’t know how to file his residency on his taxes. What is the best way to do this. His income in GA is greater than the NC income.
    Thanks

  1091. Sharon on Sun, 24th Feb 2013 10:24 pm
  1092. Can you take my last name off the comment above? Thanks

  1093. Michelle on Fri, 1st Mar 2013 3:38 pm
  1094. I have a question on the same subject.
    The state of North Carolina keeps sending me notices that I owe an enormous amt of taxes.I neither lived in nor worked in the state those years.
    The notices they sent me even listed the companies that I worked for in another state.
    I called several times and also sent the forms back,with explanation,and yet I STILL receive the notices.
    NOW they are asking me to retrieve all my tax documents for 2008 and 2009 and send them copies.
    I am angry.
    Do I have to comply?
    If I neither lived in nor worked in this state it is none of their concern.What do you suggest?

  1095. Caitlyn on Fri, 1st Mar 2013 5:54 pm
  1096. Hi!

    Last year I moved from MA to ME (April 1, 2012), and I transferred within the same company. I didn’t check my paychecks, which I obviously should have, but when I went to file my taxes I noticed MA took out the whole time I was with the company in 2012. So from April on I was being taxed from ME and MA when I was only living in ME. I never lived in one state and worked in another. When I go to put in my state withholding from MA it says the full taxable amount I made that year when it should only be a little more than half that. I asked my company to correct it (I quit in July 2012) and they said they don’t know what to tell me since my address never changed in payroll. Talking to the state of MA about it was helpful, but their advice was to get it corrected, which my former employer is giving me a hard time about. I feel like I shouldn’t just subtract the ME state withholding from the total to get the MA because it won’t match with my W2. Is there an easier way to go about this? Thanks for any advice!

  1097. Angel on Fri, 1st Mar 2013 9:47 pm
  1098. I need some help with my state taxes and I apologize if it repeats something from above… Here is my scenario:
    My husband started work in PA while we were still living in WV from approx March 2012 to June 2012, when we signed a lease for an apartment in PA (became resident)… Although I was listed on the lease, I remained in WV. We were having a lay off at work that started Sept. 1st so I remained in residence of WV until Sept. 1st then moved to PA permanently so my income from employment is all WV. I did have unemployment for WV while in PA from OCT – DEC.
    My husband earned income living and working in PA since June and I have no income for PA at all in 2012.
    I know PA and WV are reciprocal ( I don’t really understand what that means)…
    trying to do PA and WV tax returns are making me pull my hair out…. They ask for the date you became resident, but they only ask it once and it’s different for me then my husband…. any suggestions or help would be greatly appreciated!

  1099. Jan Roberg on Sun, 3rd Mar 2013 4:48 pm
  1100. Hi Sharon,
    Your son is a non resident of NC and a resident of Georgia. He will take a credit for taxes he pays to NC on his Georgia tax return.

    Yes, I took your name off too.

  1101. Jan Roberg on Sun, 3rd Mar 2013 4:58 pm
  1102. Hi Michelle,
    It sounds like you could have been a victim of identity theft. Perhaps some creep filed a tax return in your name over there and now NC is trying to figure things out.
    1. Make sure NC is really the ones asking for the information. Sounds like you did talk to them, just making sure.
    2. I’d ask if it’s an identity theft issue. If you never worked or lived there, then that’s the logical explanation.
    3. Did any of your jobs ever withhold NC tax? I’ve seen that–happened to me. Company was withholding tax for wrong state. That could trigger something too.
    4. If NC is legitimately checking into your taxes, I’d go ahead and send them the proof that you filed somewhere else.

    A couple of things: NC is not a community property state–so you don’t have to worry about owing tax for a spouse that lived there.

    NC is not a common law state–so you don’t have to worry about being married to someone that you’re not married to there either. (Those were the first two things that popped into my mind.)

    So that brings me back to indentity theft. That’s a tough issue to prove. You might need some help.

  1103. Jan Roberg on Sun, 3rd Mar 2013 5:04 pm
  1104. Hi Caitlyn,
    Do Not just subtract out numbers on your W2–you’re right it won’t match.

    Here’s what you need to do.
    1. You are a part year resident of Massachusetts.
    2. You are a part year resident of Maine.
    3. You will need to allocate your income appropriately on your tax returns. You’ll do that on the NRI form.
    4. You will get a refund for the overpayment you made to MA.

    Note: you’ll have to do some manual overrides to get this to be right because your company said you were living in MA while you lived in Maine. Bottom line–when you add the income on your MA return to the income on your ME return, it should total exactly the income on your federal return. If that’s not happening–get a professional to help you.

  1105. Kim on Mon, 4th Mar 2013 5:25 am
  1106. My daughter worked in MO all of 2012. She rented a house in MO from 1/1/2012 to 8/15/2012. She moved to KS in August. We have lived in KS since she was born. She never updated her drivers license, car tags, nor registered to vote in MO (she kept her KS drivers license and car tags). Her employer withheld for both MO and KS (although not much for KS). My question: when filing her taxes, we were planning on just claiming residency as full time in KS. Will that cause any issues? Also an unrelated question — she received a 1098T form for school tuition — but she has taken our school loans for her tuition — can she still apply for the tax credit if she hasn’t actually paid the tuition — she used the loans for that? — Thanks.

  1107. Srikrishna on Mon, 4th Mar 2013 6:43 pm
  1108. Hi,
    I was a full time student in NC and earned income in NC while working from Jan – May and from Aug – Dec. During summer, I moved to CA and worked for 3 months. I rented an apartment in CA.
    1) Should I be filing as part-time resident / full time resident of NC?
    2) If I need to file as full time resident of NC, is the income I earned in CA taxable in NC?

  1109. Jan Roberg on Sun, 10th Mar 2013 10:02 am
  1110. Hi Angel,
    Yep, that is a hair puller. Here in Missouri they have spaces for the husband and wife to move separately, but I checked on the PA return and you’re kind of all or nothing.

    But here’s the thing about reciprocity–basically it states that you are taxed by the state you live in. You should apply for a refund from the state you don’t live in and use the money to pay your live-in state.

    What’s funky with you is that you lived is separate states.

    You might want to get a local professional to help with yours. I don’t do many Pennsylvania returns and have never done a West Virginia one. The one thing I do know is that a local preparer will have better information for you. (I’m the queen of Missouri taxes–there’s all sorts of little tricks–you want someone like that for you.)

    If I were doing your return, I’d play with the filing status–married filing separately (not always good, but might be in your case.)

    I’d also play with making you both residents of PA in June and dealing with the reciprocity.

    But the important thing is–a local preparer would have better information for you. Even though PA and WV have reciprocity–one or the other might be a better state for you to claim because of credits and deductions.

    Sorry I’m not much help here. Here’s a link to help you find an EA in your area:
    https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

  1111. Jan Roberg on Sun, 10th Mar 2013 4:02 pm
  1112. Hi Kim,
    I’ll answer the easy question first. Yes, your daughter can still qualify for the tuition tax credit even if she paid the tuition with her loans. That’s perfectly okay.

    Now–what state does she live in. It sounds to me like she is a resident of Kansas and a non-resident of MO. That’s how she should file.

    One more thing–is she an undergrad? If yes, you might be able to claim her and her tuition tax credit on your taxes. That may be the best thing for all of you. If you might be able to claim her, try running the numbers both ways and see how it plays out. It’s worth checking.

  1113. Jan Roberg on Sun, 10th Mar 2013 4:13 pm
  1114. Hi Srikrishna,
    You were a full time resident of NC and a non-resident of California. You will pay tax on all of your income to NC. You will only pay tax in California on the income you earned in CA.
    On your NC tax return, you will claim a credit for the tax that you paid to CA. If you use the 1040.com software (a link is at the top of this website) it will compute that for you automatically.

  1115. Jan Roberg on Sun, 10th Mar 2013 7:23 pm
  1116. Hi Cindy,
    I think that if your husband is temporarily in California, that you could file him as a non-resident of California and a resident of Georgia. That would probably be the best for you taxwise as well.
    Do check California rules about residency though. If he was there long enough, California might require he file as a resident. Just double check that before you file.

  1117. Jan Roberg on Sun, 10th Mar 2013 7:34 pm
  1118. Hey Lesley W. –
    I’m playing catch up with the mail bag and I think I missed your post. Sorry.

    You’ve got Oklahoma non-resident income. I think the problem you’re having is you’re using the regular tax return for Oklahoma. What you need is the Non-resident return. The 511NR. That one has the Oklahoma income sorted out. That should give you the results you’re looking for.

  1119. Neil on Mon, 11th Mar 2013 3:08 pm
  1120. Hi Jan,

    I moved to IL from WA last year. Only wages I earned last year were in WA. I did earn couple of hundreds in interests and dividends on my investments through the year. On the other hand, my spouse earned wages as a full year resident of IL. We filed federal returns jointly. What should be our strategy for IL returns?

    1. Do we file 2 separate IL returns for me and my spouse, each filed as married filing separately?
    2. Do I even need to file IL return when all I earned after moving to IL was small interests/dividends and no wages?

    Your help would be much appreciated. Thanks!

  1121. Jan Roberg on Wed, 13th Mar 2013 9:34 pm
  1122. Hi Neil,
    you will file jointly as a part year resident of IL and Washington. (No Washington taxes.)

    Wages are taxed in the state they are earned in. Interest and dividends are taxed in the state you live in. It’s in your best interest for your interest and dividends to be earned while you live in Washington. Your financial statement will tell you when the dividends were awarded. It will make sense for you to separate these out if any can be attibuted to Washington.

    You and your husband will have different times that you start living in Illinois.

    Oh–one thing to keep in mind. When you’re inputting the W2s into the computer software–when you work in Washington (or another no-tax state) they usually leave the “state” box blank on the W2. You’ll want to put WA in the state box so that your software doesn’t put the income into your Illinois return.

  1123. Thomas L. S on Sat, 16th Mar 2013 12:09 am
  1124. My entire working career was in Virginia. When I retired I moved to North Carolina. My retirement pension is from Virginia. I have a part time job in Virginia. I have never worked in North Carolina. My question is: Do I have to pay any income tax to the state of North Carolina. I know that I have to file a return in North Carolina but do I have to pay? Thank you.

  1125. Terry M on Sun, 17th Mar 2013 12:51 pm
  1126. I live in Pennsylvania, work in Ohio, & my pay check is out of Texas. They presently are taking Ohio state tax out. Can I elect to not have this state tax out? I assume I will have to contact Texas to have this done. If I do, do they have to oblige or can they say no? If they continue to take Ohio state tax out, do I have to pay my Pennsylvania state tax quarterly, or can I wait until next tax season? If I can wait, do I have to file in Ohio, & wait to get that tax in order to send it to Pennsylvania, or does Pennsylvania cross over into Ohio & collect it? Any help you can give me will be greatly appreciated. Thanks.

  1127. Coty on Mon, 18th Mar 2013 9:10 am
  1128. My wife and I moved from Louisiana to Texas in December of 2011. We moved into a corporate rental while our house was being built. Can we file as part year residents in Louisiana, since we technically moved out of the state during 2011, even though there were only about 10 days left in the year.

  1129. David on Wed, 20th Mar 2013 3:31 pm
  1130. Hi Jan,

    Your website is very helpful. Could I ask a question. I am full time graduate student in Washington, DC and lived there the whole year. I had an internship in NJ for 2 months over the summer (I stayed at a hotel). My company witheld both for NJ and DC income taxes. What income tax return do I file for NJ (nonresident or part-year resident)? I would also file resident return for DC?

    Thank you.

  1131. human on Wed, 20th Mar 2013 8:33 pm
  1132. Please advice. I am a non resident alien who came to USA (NJ) in Sep 2012. stayed there for 3 weeks and went to MN in Oct mid and stayed there till year. Now employer withheld NJ taxes only. I want to file MN as I leased out an apartment and lived with family there. From your blogs , I understood that file for MN taxes and get a complete refund back from NJ. Please advice on few points-

    .do I need to send MN return to NJ or any note stating that employer was wrongly withholding. what else needs to be sent to NJ to resolve any miscommunication,do I need to send them address proof of MN.

    .I stayed in NJ for 3 weeks and did not receive in that time period. So do I owe any money to NJ? Do I need to allocate any money from Total state wages to NJ. If I allocate then MN total allocated wages is reduced from overall total wages.

    . I have NJ license and mobile e-bills at NJ address as I never changed that as I don’t have a car, is that a problem in asking refund from NJ.

    . In my federal return , do I need to attach NJ and MN returns also,or how will IRS got to know that I am paying MN, they might send info to NJ

    . I know we have to pay state tax to 1 state, but if I did not earn much and to close this mess, can I pay both stated for same period. I only fit as Non resident for both as I stayed for less than 183 days.

    Please please reply.

  1133. Jan Roberg on Wed, 20th Mar 2013 9:03 pm
  1134. Hi Brian,
    I think I understand your question. You work in Kansas but live in Missouri.

    When you do your Missouri taxes, and you input the Kansas tax liability (and yes that’s the right number to input, not the withholding.)

    But when the return prints, the credit for taxes paid to Kansas shows up as lower than what your actual Kansas liability is. That’s not really that unusual either. Missouri has a whole formula for that so I often get smaller numbers–that’s okay.

    You should never see a refund from Missouri unless you’ve had Missouri withholding. At least, not in your situation.

    I hope that answers your question.

  1135. Jan Roberg on Wed, 20th Mar 2013 9:15 pm
  1136. Hi Thomas L S-
    I deleted your last name, just for privacy.

    You will be liable for North Carolina income taxes. You will file as a North Carolina resident and a Virginia non-resident. You will pay Virginia tax on the income you earned in Virginia.

    You will claim a credit for the tax you paid to Virginia on your NC return. You will pay tax on all of your retirement income to North Carolina. (Or whatever part of your retirement income that is taxable in NC.)

  1137. Jan Roberg on Wed, 20th Mar 2013 9:25 pm
  1138. Hi Terry M,
    You are supposed to have Ohio tax taken out because you work there. So don’t change that.
    Since you are a Pennsylvania resident, you will get a credit on your PA tax return for the tax that you pay to Ohio.

  1139. Jan Roberg on Wed, 20th Mar 2013 9:27 pm
  1140. Hi Coty,
    I think you should just file as Texas residents for all of 2012 since you moved there in 2011. If you earned any income in Louisiana, you would claim it as a non-resident.

  1141. Josh on Thu, 21st Mar 2013 6:09 pm
  1142. I started my job in NJ where I stayed and worked for 3 weeks and then was moved to MN for rest of year. I got my first paycheck in MN only as it is usually 3 weeks delayedEmployer kept withholding NJ taxes, now I am filing a non resident return with NJ and asking for refund.

    My question is do I need to allocate any income to NJ for those 3 weeks

  1143. josh on Thu, 21st Mar 2013 6:18 pm
  1144. I started my job in NJ where I worked and stayed for 3 weeks, then I was moved to MN where i worked and stayed for whole year. I received my first paycheck in MN only as it is usually 3 weeks late. Employer only withheld NJ taxes, now i am filing a non resident return with NJ to get money back.

    My question is -do I need to allocate Income to NJ for those 3 weeks.

  1145. Deepa B on Fri, 22nd Mar 2013 6:22 pm
  1146. My daughter went to school in Evanston, IL and earned about 1000 dollars working while a student. Federal and state taxes were withheld in IL. She graduated in June and was home in NJ til first week of August. Since August she works full time in Chicago, IL and taxes are held there. The only income she has in NJ is less than 100 dollars in interest income. I am filing her as an IL resident. Is that fine and if so do I have to file anything in NJ

  1147. Robin on Sun, 24th Mar 2013 8:38 am
  1148. We have moved from state to state several times so I understand the part year residency but we have never had a move cross over from one year to another and I’m not sure how to file for 2012.

    In Oct 2012 My husband moved and began working in TN (about 11 hours from our NC home). I was still living and working in NC full time as of 12/31/12. I will move myself and our furnishings sometime in 2013. We file joint. Do I file full time NC resident and he files part year NC resident on the same 2012 return?

    He did not have a permanent TN address as of 12/31/12 because he was still in a hotel with the company paying expenses so his W2 from TN has his NC address. Does this effect how he files?

    The only income he had in NC in 2012 was unemployment and I know he owes NC taxes on that. TN did not take taxes from his TN earnings because it is an income tax free state.

    In short,can he file as part year resident in NC and does he owe any state taxes to NC for his earnings in TN? FYI, I use a software program to prepare our taxes.

    Appreciate your input.

  1149. Shirley on Sun, 24th Mar 2013 10:39 pm
  1150. I’m a F1 student in MA and have income from CA. Can you provide any useful information about two states tax returns as non-resident aliens?

  1151. Alice on Sun, 24th Mar 2013 10:48 pm
  1152. I am currently a GA resident/student. During last summer, I worked oversea and got paid by a Ohio corporation for the 7 weeks of work I did oversea. How/which state(s) do I file? Thank you!

  1153. Jay L on Mon, 25th Mar 2013 12:16 pm
  1154. Hi Jan -

    I commend you for replying to all the questions posted here two years running! I’m doing taxes with Turbo Tax online right now and I’m pretty I’m doing it wrong as it appears we owe we too much:

    Me: Lived in DC 1/1/12 to 4/30/12. Got legally married to my wife in March 2012 but didn’t move into my wife’s condo in MD until 5/1/12. My work is in DC and it withheld DC taxes through April, then switched to MD taxes starting in May.

    Wife: Lived and worked in MD for all of 2012. She owns the condo in her name only and has a good-sized mortgage interest deduction.

    We both made roughly the same amount of money last year, both have student loan interest deductions, and don’t have children.

    Right now Turbo Tax recommends filing jointly but it says we owe a little federal and Maryland tax, but WAY too much DC tax. I suspect it has something to do with what you wrote about above. Should we be filing separately for the federal and state returns? I’m about ready to just pay someone to do this for us!

    Thank you in advance!

    JL

  1155. Cory on Tue, 26th Mar 2013 12:43 am
  1156. Jan,

    This is my first time filing multiple state tax and it’s confusing. Here is the situation, I relocated for work from IL to CA. I didn’t move out to CA until Dec. last year but my new job in CA started in Nov. My spouse hasn’t moved to CA yet. I called the IL tax dept, they said I should file IL state tax as full time resident. I called CA tax dept, they said I should file as NR. Also, we file as married jointly for federal, should I file the same for CA or I should file as single?

    According to your article, I should file as part year for IL and CA? Also, when I claim for other state tax credit, I should claim on IL filing or CA filing?

    Thanks so much for your time and help!

  1157. sam on Tue, 26th Mar 2013 10:25 am
  1158. Hello,

    I lived in California and moved to Texas in July. I work for the same company as I did in California but now from Texas remotely. How do I file taxes?

    Also on my W2 I got local income tax (box 19 from Texas) withdrawn but not state income tax(box 17) and tax act said this is wrong?

  1159. Tiffany S. on Wed, 27th Mar 2013 10:38 am
  1160. Hi Jan,
    I moved from PA to CA last March to be with my Fiance who is a full time CA resident. I continued working remotely for my company in PA until June, and then I started a new full time job in CA, and the we got married last August.

    We filled out our Federal return jointly, but how do we file our state taxes? Should we both file married but separate in CA? I know I am a part time resident in both PA and CA. While I was working for my old company in PA they only deducted CA state taxes. Will I owe money to PA for those wages, or do I need to take a credit for taxes paid to CA? Thanks so much for the help.

  1161. Diane on Thu, 28th Mar 2013 3:35 am
  1162. Hi Jan,

    This is a great site! Hope you can provide guidance on how to handle my situation:

    I live in CA & work for a CA company but fly out to OH 3-4 days a week. My W-2 only shows withholding from CA but I have travel receipts to prove my OH trips. On my 2012 tax return can I claim 75% of those wages as earned in OH & pay OH tax rate (instead of being taxed at the CA tax rate) and then pay the CA tax on the remaining 25%?

    Thanks!!!

  1163. Shannon on Thu, 28th Mar 2013 7:14 am
  1164. I lived in Pennsylvania and West Virginia and worked in Maryland. PA and WV taxes were withheld. Do I need to file a return with Maryland?

  1165. Nils J on Sat, 30th Mar 2013 4:43 pm
  1166. Hi Jan, I’m incredibly impressed with how you’ve helped all of these people. I have a question as well, and I’m hoping you can help.

    I grew up overseas (I’m an American citizen, though) until I moved to New York to attend college. I graduated last May and it took me six months to find a job. The job is in Virginia, where I live now. I moved here when I started working in early, early December, so I only have one month of taxable income for this tax year. I didn’t work while I was in school in New York, and only have 62 dollars of state income tax for this little bit of work I did in VA in 2012. I know I don’t *have* to file, but as you’ve pointed out, it’s always nice to get back what you can.

    So my question is – do I file a part-year return even if I don’t have a part-year return to file in another state (can you only do a part-year if you’re doing the “rest” of that year elsewhere?). Or do I file a regular resident return because VA is my intended home for the foreseeable future?

    Thanks a bunch.

  1167. Steven on Sun, 31st Mar 2013 1:10 pm
  1168. Hi,

    I’ve spoken to so many different representatives and I’ve gotten so many answers. And before I finalize my return, I’m reaching out to ask one more time to someone who may give me the correct information. First of all, I had 3 jobs in 2012. I live in Maryland but work one of those jobs in Virginia. My Virginia employeer taxes that income as Maryland state tax. When I first started filing on my own, it said I owed 256 dollars in VA tax. Most agents I spoke to told me that I should not owe anything to Virginia because I live in Maryland, and those two states have stipulating agreements and that the Virginia W2 could be filed under Maryland. They asked what state was listed in box 15 on the W2 and it lists maryland on all W2′s including the job in VA. So they explained that if one was listed as VA, then I would file VA, but since they all list MD, I should only be filing Maryland state returns, as opposed to filing a Maryland state return and a VA non-resident return as well. They told me to delete the non-resident Virginia return and only file Maryland, and that was why I owed VA state tax. I’m trying to confirm this for sure so I don’t have any surprises later on. Also, many people at my job on the same team live in Maryland but work in VA, and have never had to owe any amount of VA tax. So I’m curious as to why I owe so much in VA. Should I only be filing Maryland returns as suggested, or is there something else I need to be doing? And why do I owe over $250 in Virginia?

  1169. Christopher on Wed, 3rd Apr 2013 9:25 am
  1170. Hi Jan,

    I’m so glad to see that you’re still answering questions here! That’s amazing! I’m also glad to run into this article, because I was almost going to go to a tax professional for a simple multi-state filing.

    Am I doing something wrong? I lived and worked in New York for the first 4 months in 2012 and moved to California and work there now. When I tried doing the New York filings it said I owed $500+. Does this seem normal and if I do my California return right after should it cancel out?

    Thanks in advance!

  1171. jopaga on Wed, 3rd Apr 2013 9:08 pm
  1172. my wife is a traveling physical therapist and has been located in 3 different states for work in 2012 (MD, IN and VA) in that order. I am a resident of MD. We plan to file federal jointly, but not sure how to file her returns in 3 states. She received W2′s for each state, her driver’s license is in MD but she has rented in the 2 other states (IN and VA) her address on the W2′s is a VA address where she rents.

    Any advice on how to file in these three states? Can she be a part time resident of each state or does one of the three have to be designated as her permanent residence?

    I was going to make her a resident of MD and nonresidents in IN and VA.

    Thanks for your time!
    -not sure where to begin.

  1173. Pamela on Thu, 4th Apr 2013 9:53 pm
  1174. Hi Ms. Roberg.

    I wanted to ask a question about my situation. I am a married mother of two small children. However I lived and worked with the state of MD from November 2011 until October 2012 when I moved to MS and am now working for the state of MS. At the same time my husband was living in Georgia from November 2011 until May 2012 when he moved back MS in May 2012. He also took out a 15000 from his retirement and was taxed federal but not state and I was unaware of him doing this. How should I file because I am being taxed big time when I file jointly with him. I moved back with him in a new state of MS in October. Please help.

  1175. Coty on Mon, 13th May 2013 10:20 am
  1176. I apologize for my mistake…I said it was December of 2011 when we moved to TX, but it was actually December of 2012. I need to know if I can legally file as part year resident and how to do this. In other words, we lived in Louisiana until December. I worked in Louisiana until that point. My wife worked in TX the entire year. I have two days left to file…what is my best option?

  1177. Jan Roberg on Mon, 20th May 2013 4:06 pm
  1178. Hi Tiffany,
    So you’ve lived in Kansas all your life but moved to Missouri in September. When you do your own taxes, it shows that you owe nothing to Missouri or Kansas and that seems wrong.

    What I think you should do is file as a Kansas non-resident and a Missouri resident. No matter what, you have to pay Kansas for all of your working income. Your Kansas taxes are higher than your Missouri taxes so when you claim the credit for taxes paid to Kansas on your Missouri return it will wipe out any Missouri debt. That’s the easiest way to do it and it’s going to give you the same result as if you divided up your income from when you lived in Kansas versus when you lived in Missouri.

  1179. Greg on Tue, 28th May 2013 6:31 pm
  1180. Someone should honor you for doing a public service here.
    Forgive me is this was answered before.

    I live in Dallas and work out of my house. I was hired by a company in Denver through and agency. I am a contractor and plan to spend less than 50% of my time in Colorado (if that matters) over the next 3 months.

    What is my tax obligation?

    Does it matter if I am hired by a consulting firm in Texas (employer) and working for the company in Colorado (client).

    Would it make a difference if I had a direct agreement with the client in Denver vs through an agency in either state.

  1181. Jan Roberg on Mon, 3rd Jun 2013 8:05 pm
  1182. Hi David,
    Since you lived in Washington, DC for the entire year, but had a job in New Jersey for just two months, I would file as a WDC resident and a New Jersey non-resident. Then you would claim a credit for taxes paid to New Jersey on your Washington DC return.

  1183. Jan Roberg on Mon, 3rd Jun 2013 8:25 pm
  1184. Hi Human and/or Josh,
    Welcome to America. Our tax system can be pretty confusing. Sorry about that. It’s hard even for Americans.

    So you came to the US via New Jersey and stayed there for 3 weeks before moving to Minnesota.

    The first question would be: did you earn any income while in New Jersey? I’m guessing that you did, that’s why your company started withholding New Jersey taxes. If that’s the case, then I think you might be best served by filing as a “part-year” resident of New Jersey and a “part-year” resident of Minnesota.

    If that’s your situation, you should be getting a refund from New Jersey and will owe Minnesota since they didn’t have any withholding.

    Now, if you made no income in New Jersey, you’ll still have to file a New Jersey return so that you can get your refund. You would file as a non-resident and show that there was no income earned in New Jersey. I agree with your thought about attaching a copy of your Minnesota tax return to the New Jersey return–that will show that you are paying Minnesota for your income.

    It’s okay that you have a NJ drivers license. You still have a Minnesota address so that’s okay.

    You do not need to attach any of your state tax returns to your federal return. They share information.

    You are not limited to paying taxes to only one state. Some people pay taxes to five or even more states (but that’s pretty rare.) But if you have taxes for both New Jersey and Minnesota, that’s pretty normal.

    If you earned no income in NewJersey

  1185. Jan Roberg on Mon, 3rd Jun 2013 8:29 pm
  1186. Hi Deepa,
    Your daughter basically worked in Illinois only and she had some interest income from New Jersey (her original home.)
    If you file her as an Illinois resident, she will also pay tax to Illinois on that $100 of interest income she earned in New Jersey as well. But I think you’re doing the right thing by showing her as an Illinois resident for taxes.

  1187. Jan Roberg on Mon, 3rd Jun 2013 8:36 pm
  1188. Hi Robin,
    I think the best thing for you would be to file as a full year resident of NC and your husband file as a part year resident of NC and part year for Tennessee. Tenneessee does not have a state income tax so being a Tennessee resident is a good thing for you taxwise.

    It’s perfectly normal to have an old address on a W2, but I would file the federal return with his Tenneessee address. (The address on the tax return has a lot of power.)

    So yes, he can file as a part year resident of NC.

  1189. Jan Roberg on Mon, 3rd Jun 2013 8:38 pm
  1190. Hi Alice,
    You live in Georgia, but you took a 7 week job overseas and got paid by an Ohio company. You will still file as a Georgia resident and pay taxes on our overseas income to Georgia as it was only a temporay assignment.

  1191. Jan Roberg on Wed, 12th Jun 2013 9:04 pm
  1192. Hi Shirley,
    You’re on an F1 visa. You’re a student in Massachusetts and you have income from California. First and foremost, you live in Massachusetts, so you will be taxed as a Massachusetts resident. Even though you are a non-resident alien for federal purposes, Massachusetts will treat you like a resident because you live there. Welcome to America, the land of taxation that doesn’t make sense.
    Now, about the California income. The question is: did you actually work in California or does the W2 just have a California address? If you worked in California–that is, you personally were in that state working for awhile, then you will file a California non-resident return.
    If you worked in Massachusetts, but the W2 has an employer address of California, then you just file the Massachusetts return and don’t file anything for California.
    I hope that answered your question. Our state issues can be a bit confusing. (Even to people who were born here!)

  1193. Jan Roberg on Sat, 15th Jun 2013 8:20 pm
  1194. Hi Cory,
    Under your circumstances, I think you are better off filing as an Ilinois resident and a California non-resident for 2012. (Which is exactly what the states told you and I agree.)
    You are married, you can’t file as single in California. You still file as married, both you and your wife are non-residents but your wife has no income in California. It will turn out okay.

  1195. Jan Roberg on Sat, 15th Jun 2013 8:32 pm
  1196. Hi Sam,
    So you moved to Texas from California but you’re still working for the same employer. Even though you work for your California employer, now that you live in Texas and work in Texas, you are subject to Texas taxes–which, Texas has no state income tax.
    I’m sorry but I don’t know anything about local income taxes in Texas. There is no state income tax. When I used to live in Texas, we didn’t have a local income tax where I lived (but it was a long time ago.)
    You will file a part year resident of California tax return. You will not file a Texas tax return. If your city has a city tax, you’ll have to check that out with them, sorry.

  1197. Jan Roberg on Sat, 15th Jun 2013 8:40 pm
  1198. Hi Tiffany,
    You and your husband will be able to file as married filing jointly on both your state and federal returns.
    I’m guessing that you had some income in PA during those first three months so you would need to file a PA return for that income. The rest of your income is in CA so the majority of your taxes will go there.

    Technically, what you need to do is file as a part year resident of California and a part year resident of PA. That said, it might be easier to file as a California resident and a PA non-resident. In your situtaion, it should result in the same taxes so you might want to go with the easier option.

    Congratulations on your marriage.

  1199. Jan Roberg on Sat, 15th Jun 2013 9:43 pm
  1200. Hi Diane,
    Sorry, but you’re a California employee and resident.

  1201. Jan Roberg on Sat, 15th Jun 2013 9:54 pm
  1202. Hi Shannon,
    since you lived in Pennsylvania and West Viginia then you don’t need to file a tax return for Maryland.

  1203. Jan Roberg on Sat, 15th Jun 2013 9:59 pm
  1204. Hi Nils,
    since all of the income you earned for the year is in Virginia, it’s okay to file as a resident.

  1205. Jan Roberg on Sat, 15th Jun 2013 10:05 pm
  1206. Hi Steven,
    Your Virginia employer withheld your taxes for Maryland. That’s the right thing to do for you. You do not need to file a Virginia return. See this link: http://www.tax.virginia.gov/site.cfm?alias=ResidencyStatus#NONRESIDENTS

  1207. Jan Roberg on Sat, 15th Jun 2013 10:09 pm
  1208. Hi Christopher,
    I don’t know. Sorry. Here’s what I can tell you. You will file a part year return for New York and a part-year for California. You won’t get credit for taxes paid to another state because you are doing a part year return.
    You should only pay tax on the income you earned in each state to that state.
    If you normally have not owed New York and your withholdings are the same, then you probably don’t owe $500 now. But if you weren’t withholding properly while living in New York, you could easily owe that much for four months.
    Sorry, I just don’t have enough information to go on.

  1209. Melanie Geiler on Fri, 28th Jun 2013 8:13 am
  1210. Hi. We live in Illinois and work in Missouri. Until this week, we only had Missouri tax withheld and filed both Missouri and Illinois returns with the proper tax credit forms. Without alerting us beforehand, this week our company has starting withholding both Illinois and Missouri taxes. They based the Illinois withholdings on our Missouri paperwork. Should we start claiming “exempt” for Missouri or just jack up the number of allowances being withheld?

  1211. Jan Roberg on Mon, 1st Jul 2013 7:59 pm
  1212. Hi Melanie,
    I wouldn’t claim exempt for Missouri–you work in Missouri so you will definitely pay tax in Missouri. Did you wind up owing for Illinois? If you want to jack up your exemptions so you don’t have as much withholding, I’d do it for Illinois–unless of course you wound up with a large balance due.
    Bottom line, you pay tax on your wage earnings to Missouri and you should get a credit in Illinios for the taxes that you pay to Missouri. It used to be a no-brainer and you’d never owe Illinois anything. But now that the Illinois tax rate went up to 5%, lots of people now have to pay tax to Illinois also–but still, it shouldn’t be up to your full withholding rate.

  1213. Jan Roberg on Mon, 1st Jul 2013 8:06 pm
  1214. Hi Gregg,
    Thank you. You’re so kind.
    Okay–you live and work in Dallas, Texas a no tax state. You were hired to do some contract work–some of which will be done in Colorado.

    Bottom line: the work that you perform in the state of Colorado will be taxed in the state of Colorado. The work you perform in Texas, will be taxed to Texas–but it’s a no-tax state so it’s not subject to state taxes.

    You’ll want to keep real good records, because Colorado will most like want you to pay taxes on everything. Be prepared to back up everything that you allocate to Texas. You will file a Colorado “non-resident” return.

  1215. Jan Roberg on Tue, 16th Jul 2013 8:45 pm
  1216. Hi Jopaga,
    You’re right, you should have your wife be a resident of Maryland, especially since that is where you are, and be a non-resident of the other states.

  1217. Jan Roberg on Tue, 16th Jul 2013 8:53 pm
  1218. Hi Pamela,
    I would play with your tax returns if I were you, but I see a couple of issues.
    First, since you both lived together in Mississippi during that last part of the year, then you won’t be able to claim head of household instead of married filing separate. You can still file jointly, but as you say, your husband’s taxes mess you up.
    That said, filing jointly may still be better for the two of you together rather than separately, especially since you have children.

    I would have you be a part year resident of Maryland and Part year of Mississippi. Your husband would be a part year of Georgia and part year of Mississippi.

    This is going to be a little confusing, but it’s not impossible. I think your biggest issue is your husband’s $15,000 he took out of his retirement. That’s going to be taxed to the state that he was living in when he took the money out.

  1219. Lisa D on Wed, 31st Jul 2013 10:56 pm
  1220. I am considering a 6-12 month temporary assignment in Colorado paid by Colorado employment agency. My husband and I live in CA. I’ve worked as 1099 this year and my husband works W2 in CA. Reading the comments on this page, are my taxes for 2013 and most of 2014 going to be a disaster?

    The assignment is full-time and so I will have to get a place in Colorado for the duration of this project work. What deductions can I claim?should I file in CA married filing separtely? Because I dont want to incur cost to fly home ever weekend so which state would be my residence and which would be non-resident.

    Also, agency (is located in CO so will issue me W2 for those wages in CO) offered to pay me additional per diem plus hour wage, what amount is customary? Can I rent a place in CO and write off difference for per diem vs what I will have to actually pay out?

    This is all very confusing and I’m not sure if its worth taking if I’m going to have issues with my taxes!

    Please advise. Thank you kindly.

  1221. Jan Roberg on Sat, 3rd Aug 2013 9:30 pm
  1222. Hi Lisa,
    I took your last name off for privacy. You ask if your taxes will be a disaster–I say no. But we’re probably looking at this differently. Will your taxes be more difficult than they were before? Yes. But don’t let your taxes keep you from a good opportunity.
    So, if you take the job in Colorado and they pay you as a W2 employee, then you will be able to claim something called “employee business expenses”. Because you’re only expected to be there from 6 to 12 months, you’ll be able to deduct the food and housing expenses as well as mileage and any other job costs that go with the position.
    You will file as a California resident and a Colorado non-resident. You will claim a credit on your California tax return for the taxes that you pay to Colorado.

    Now, if you are being paid a per diem, you will not be able to deduct your living expenses. That said, getting a per diem is usually better than getting a tax deduction. You are correct, you would write off the difference between your per diem and what your expenses actually are.

    Currently, the standard lodging per diem rate is $77 a day. The standard meal rate is $46. Here’s a link to the US Government Services Website. It has all the local per diem rates. Click on Colorado on the map and you’ll be able to look up the area you’re looking for: http://www.gsa.gov/portal/content/104877?utm_source=OGP&utm_medium=print-radio&utm_term=perdiem&utm_campaign=shortcuts

    Hopefully your per diem that you are paid will cover most of your expenses. In those cases, you really won’t have much of a deduction, but you won’t care either.

    Good luck.

  1223. Jun on Thu, 22nd Aug 2013 12:14 pm
  1224. Hi Ms. Roberg,

    I live in California and I’m about to get a job in Texas as a computer consultant. Since I don’t have a company to use for 1099, I going thru my friend’s company based in california for a W2. My friend also work in that company in Texas and he lives in california. I will be fying to TX every Monday morning and going back to california Thursday nights. I will just stay in a hotel (will not be renting a place). My question is will California still tax my Texas income? Will the W4 be for texas or california? What state will withhold my income? I know that Texas has no state income tax, so I will not file a non-resident tax return?

    Thanks a lot.

    Jun

  1225. Jan Roberg on Sun, 25th Aug 2013 3:59 pm
  1226. Hi Jun,
    The bottom line is that California will tax your Texas income. If you have a W2, then California will withhold your tax. If your company cannot withhold California tax, then you will need to make estimated tax payments.

  1227. Dave B on Sun, 13th Oct 2013 12:15 pm
  1228. I just moved to Kentucky, but I have a loss carry-forward in Michigan. Can I take that loss on my KY return? The KY return specifically asks to enter Kentucky Net Operating Loss. It sounds straight-forward, (like it does not apply to KY return) but just wanted to make sure.

  1229. Jan Roberg on Sun, 20th Oct 2013 4:24 pm
  1230. Hi Dave B,
    That’s a really good question. I say that you can only carry forward a net operating loss from Michigan to a Michigan return. I recently had an disagreement with someone over this about a Colorado return. She ignored my advice and submitted a Colorado state return with the NOL even though the NOL was from Missouri. That was over six months ago and she still hasn’t received the refund yet. But–she hasn’t received a reject letter yet either. I still say the the NOL belongs to the state you earned the NOL in, but it may be worth a phone call to the Kentucky department of revenue to double check.

  1231. Andrew on Wed, 11th Dec 2013 9:28 pm
  1232. Hi Jan,

    First, thank you for this site, it’s very helpful.

    My situation is that I used to live and work in California but was laid off last June. I knew that the job was ending and as early as 2012 I had started moving my stuff and addresses, car registration, etc to my parent’s place in Massachusetts. After leaving California I spent two weeks in Massachusetts and then moved to Japan, where I’m intending to live for the next few years. After that I’m not foreseeing returning to live in California, but I can imagine moving to Massachusetts.

    My question is: I’d like to switch my residence to my parent’s house in Massachusetts (I have no other housing in the US), so I was planning to submit part year returns for both CA and MA for 2013. But I hear that California is very aggressive about considering you a resident if you move overseas. Further complicating things is that I have a chance to continue working remotely on a contract basis (sole proprietor) with my old employer in California. (I am also starting a business in Japan). I’ve read advice about switching everything — doctors, voting, library cards etc — but I’m wondering if the fact that I’ll only be spending a few weeks a year in Massachusetts for the next couple years (and may still be spending a few weeks in California also, in addition to getting most or even all of my income from California) would make it pointless to try to claim Massachusetts residency. Potentially I would pay a little less in taxes as a Massachusetts resident (depending on my income level). I’m trying to do the right thing and am also worried that, for example, California would try to claim me for tax on any non-California income even though I don’t have a California address anymore. Any advice you can give would be appreciated.

    Thank you,
    Andrew

  1233. Jan Roberg on Sun, 15th Dec 2013 6:37 am
  1234. Hi Andrew,
    My first piece of advice is to get a second opinion from a California licensed preparer. California rules are different from the rest of the country so I think when you’re dealing with California taxes–it’s always good to check with a California preparer. And–California preparers are required to pass an exam that proves they know what they’re talking about. Even though I prepare some California returns, I’m not an expert on residency rules there.

    But here’s my opinion anyway–While you are out of the country, you should be able to exempt a large portion (if not all) of your income from tax using the form 2555 Foreign Earned Income exclusion. So, you could wind up with a zero US income balance on that income anyway.

    Now, you moved away from California in June of 2013. To me, that means you’ve been gone for over 6 months. I would file your 2013 return as a part year resident of California and a part year resident of Massachusetts.

    Now–you’re going to be a contract employee of a California company. Here’s the thing, you’re not working in California so you don’t pay California tax on that income. Now, if you travel to California to work at that company, then I can see a pretty good argument for you paying California tax for the weeks you spend in California–but only for the weeks you actually work in California. See the difference?

    Where the official company headquarters is located doesn’t make a difference on your tax return. What’s important is where you actually do the work. The majority of the tax returns that I prepare are for people who live in Missouri–but their W2s are from all over the country. It’s not the address on the W2, its the address of where you do the work.

    My opinion is that you moved away from California over 6 months ago and made a residence in Massachusetts. You will be moving to Japan and setting up a residence in Japan. Pay to California what is California’s, nothing more. California should not receive tax on your income earned after June 2013.

  1235. CJ Blum on Wed, 18th Dec 2013 9:43 am
  1236. My son-in-law refinishes floors. Has his own business. He and my daughter currently live in St. Louis. My daughter would like to live in Columbia IL but her husband doesn’t want to move the business. My question is, does he have to move the business? Can he keep the business in St Louis by getting a PO box?

    thank you much for your input!!

  1237. Jan Roberg on Wed, 18th Dec 2013 3:31 pm
  1238. Hi CJ,
    I see no problem with keeping the business in St Louis. Lots of people live in Illinois and work in Missouri and the other way around as well. There’s a bunch of things to consider about his filings–whether he’s got a corporation or is a sole proprietor and things like that, but he’s certainly able to keep his business in St Louis while living in Illinois.

  1239. Karen L on Sun, 5th Jan 2014 1:55 pm
  1240. I lived in Virginia through August of 2013, then moved to Illinois. I pay estimated taxes. To which state should I send my 2013 4th quarter payment?

  1241. Jan Roberg on Sun, 5th Jan 2014 3:03 pm
  1242. Hi Karen,
    Your state taxes are owed to the state that you lived in when you earned the money. I’m guessing that you earned income In Illinois since you moved there so I would make the payment to Illinois.
    If though, you made all of your income while living in Virginia and you earned no income (or retirement money or investment income) in Illinois, then you would still make the payment to Virginia.

  1243. Chris Parlon on Wed, 22nd Jan 2014 3:13 pm
  1244. Hi Jan,

    I live in MA, but work in RI. Can I claim student loan interest in both states, or only MA or RI?

    Thanks for your help.

    -Chris

  1245. Jan Roberg on Wed, 22nd Jan 2014 9:14 pm
  1246. Hi Chris,
    Both Massachusetts and Rhode Island have the Student Loan interest deduction and Rhode Island allows it on their non-resident return so you’re good for both states.

  1247. Nathan on Mon, 27th Jan 2014 3:21 pm
  1248. Jan, thank you for a helpful site. My wife and I moved from Colorado to NY last year and I have two related questions. The first pertains to my income. I work for the same Colorado company in NY (now from home) as I did in Colorado. I received two W2s from this company, one has NY state wages equal to the federal amount and the related withholding. The other W2 is the same except it has Colorado wages of an amount lower than the Federal amount (i.e. it is only the amount earned while in Colorado). I believe that the NY part is correct, but cannot confirm that the Colorado W2 wages were done correctly. I understand how to file my partial-year state taxes, but don’t want to file something that conflicts with a W2. Would it be correct to only have the partial year state wages on the W2?

    The other question pertains to my wife’s income. She was a teacher while in Colorado, but received her salary for that work as a monthly paycheck spread out over the school’s fiscal year, so received several paychecks while in New York. For income tax purposes, was that money earned when the paycheck was received (i.e. in New York) or when the work was performed (i.e. in Colorado.)

    Thanks so much!!

  1249. Jan Roberg on Wed, 29th Jan 2014 7:43 pm
  1250. Hi Nathan,
    Sorry about the delayed response. I was halfway done with the answer and got called away from my desk and then I shut down the computer. The answer never got posted. Sorry to leave you hanging like that.

    Anyway, about you wife first: I would attribute all of the money from her working in New York to the New York tax return. Even though she received part of it while living in New York, it was for work she did in Colorado. Also, I’m guessing that the withholding is for Colorado anyway so just keep it easy.

    Now, for you. It’s perfectly normal for state wages to be less than federal wages in your situation. You worked part of the year in Colorado and part of the year in New York. Frankly, I’m surprised that the New York wages say the same as the federal. But, with the New York return, there’s a section where you attribute the income to the days you worked in New York so you’ll be able to account for the fact that you didn’t live in New York for the entire year.

  1251. Dawn on Sun, 2nd Feb 2014 9:23 pm
  1252. Jan, thank you so much for having this site! My husband works for a company that causes him to travel to various locations to work. In 2013 he lived and worked in Alabama for Jan-Feb then moved to Kentucky Mar-Dec.

    The problem is that he didn’t get around to redoing his tax form to have taxes taken out for the correct state. So taxes were collected for Alabama from Jan-Oct and Kentucky from Oct-Dec. For the tax software I’m using it asks me to “enter the portions of FICA tax that you actually paid when you lived in Alabama.”

    This then leads to the question “Federal Tax Liability per state”.

    How do I figure out these items?

  1253. Jan Roberg on Mon, 3rd Feb 2014 11:12 am
  1254. Hi Dawn, I can help!

    First, where did you live? That’s important, are you moving with him? Or are you stationery while he moves around. If you’re stationery, then your husband is a “non-resident” for tax purposes of Kentucky and Alabama. Where you live would be the resident state.

    If you’re moving with him, you would file as “part-year” residents of both states.

    To figure your Alabama income. Take your annual salary divide by 12 and multiply by 2 months. The rest is attributed to Kentucky.

    Of course, if you’ve got the actual–great use that, but dividing by 12 and mulitiplying by the number of months he lived in a state may be the best you’ve got to work with.

    For example: let’s say he made $36,000 for the year.

    $36,000 divided by 12 = $3,000

    $3,000 times 2 = $6,000

    So his income in Alabama would be $6,000 and the income for Kentucky would be $30,000 right?

    Now, to figure the FICA (that the social security and medicare tax.) Social Security is 6.2% of income and medicare is 1.45% of income. Even if he has money taken out for a 401(k)–that’s still taxed for FICA so you’d have to add that back in.

    But for his Alabama FICA you’d take the Alabama income time .0765 (6.2%+1.45%)

    Using the example with the $6,000 : $6,000 * .0745 = $447

    Not all state have you compute that.

    The federal tax liability per state question: That makes me think you’re using another state as your home state and counting Alabama and Kentucky as non-resident states.

    You’ll compute your returns for both of those states before you do your resident state. Tax liability is the amount of tax that you are liable for according to the state. You’ll find that number on the tax form–it is not your refund or balance due and it’s not the amount of withholding on the W2.

    Just a heads up though. Turbo tax is not real good if you have more than two states on the return. If you’re dealing with three states, you might want to at least have someone eyeball it for you. They’ll probably charge you a fee, but for a mulitstate return you should get a second look.

  1255. Dawn on Wed, 5th Feb 2014 10:27 am
  1256. I appreciate your insight. We are indeed filing as part-year residents for AL & KY. My concern is that I know we paid more into AL than necessary and probably not enough into KY. Same company in both states but he didn’t change his withholding from AL to KY until October even though we moved in February. So my worries are how to figure out what was paid/over-paid/under-paid to which state? I hope this may help you understand our confusion.

    Thanks again.

  1257. Dawn Blazier on Wed, 5th Feb 2014 12:09 pm
  1258. I moved from Texas to Missouri in October 2013. My Missouri State Tax owed is showing way more than I expected. The income paid in Missouri is 15% of the total gross income. Missouri is taking 70% of my Federal Refund? Am I doing something wrong? Thanks!

  1259. Jan Roberg on Thu, 6th Feb 2014 5:14 am
  1260. Hi Dawn B,
    Yes, you’re doing something wrong!

    Best guess– change from Missouri resident to “Non-Resident”.

    Two places to check–one is in the State form itself, and also, check on the very beginning screen. You are a resident of Missouri now, but there may be a box for “multi-state” or “part-year” or something like that. In my software, when you type in the address, it automatically sets you up as a resident of the state of the address you type–but you’re a part year resident of Missouri. Part-years and non-resident go into the same category.

    Fix that and it should solve the problem. Bottom line, your Missouri tax should not be more than 6% of your Missouri income.

  1261. Jan Roberg on Thu, 6th Feb 2014 5:26 am
  1262. @Dawn from Kentucky and Alabama,
    Yes, once you correct the dollar amounts you earned from each state on your tax returns, you’ll compute the tax liability correctly. Once that’s done, you’ll be refunded for the overpaid tax.

  1263. Sarai Muniz on Fri, 7th Feb 2014 11:20 am
  1264. 2012 for 3 months my husband was filming and working out of Puerto Rico but a California resident. he paid an X amount of taxes to Puerto Rico and To the U.S. along with California taxes. a month ago we received a letter from the IRS stating we owed that X amount that was paid to Puerto Rico. We don’t know what to do anymore we are exhausted and don’t know who to ask for help that will not just take out money and not help us.

  1265. Gabriel on Fri, 7th Feb 2014 6:43 pm
  1266. I live in mass but worked in Connecticut my wages were 3056.49. They took 278.77 out in federal and the ct state wages were 3056.40 and state ct taxes 52.81 and ma state wages were 3056.49 and ma state taxes 95.81 so how will i claim this and what should be my numbers on my return? Do i file both states?

  1267. Rick on Sat, 8th Feb 2014 6:14 pm
  1268. My daughter works out-of-state(Florida) while she is away at college, do I have to report that money to Indiana? Does she file as a fulltime resident since I claim her as a dependant? She has been there all year with the execption of two weeks she spent at home. My tax software wasn’t much help.

  1269. Stephen J. Fromm on Sun, 9th Feb 2014 7:29 am
  1270. My wife and I move in 2013 from MD to MA, but we moved on different dates (me, end of July; her, near end of August).

    Based on my reading around the web, my impression is that we would file jointly for federal, but separately for MD and MA. (I know that the state codes allow for this; found that on the web.)

    Does that sound reasonable?

  1271. Jan Roberg on Sun, 9th Feb 2014 3:04 pm
  1272. Hi Sarai,
    The bottom line is that the United States taxes world wide income, and a US citizen (or resident) working in Puerto Rico will have his income that he earned in Puerto Rico taxed in the US.

    It’s confusing because a citizen of Puerto Rico will not pay US federal income tax.

    Now, taxes paid to Puerto Rico count as taxes paid to a foreign country–so you could claim a credit for taxes paid to Puerto Rico to offset the taxes that the IRS wants you to pay.

    Since you live in California, I recommend hiring a California registered tax preparer with foreign income experience. California has some pretty stringent training requirements, so you should be able to find someone competent that’s not one of those “pennies on the dollar” scam artists.

    Here’s a link to the National Association of Enrolled Agents find an EA website: https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx

    Not all EAs have foreign income experience. You’re going to want to ask, “Have you ever prepared form 1116? Did you have any experience with Puerto Rican income?” You want to hire the person who says yes. Good luck.

  1273. Jan Roberg on Sun, 9th Feb 2014 3:43 pm
  1274. Hi Gabriel,
    You are a resident of Massachusetts and a non-resident of Connecticut. You should file both states because you’re probably entitled to a refund.
    Preparing tax returns is my job. I get paid for it. I give free advice online, but I can’t afford to give people their numbers. If you need help, there are free tax clinics sponsored by VITA. Here’s a locator tool: http://irs.treasury.gov/freetaxprep/

  1275. Jan Roberg on Sun, 9th Feb 2014 4:01 pm
  1276. Hi Rick,
    I just filed a student’s return with her Florida income. Sadly, she’s going to have to pay tax on that income in her resident state and so is your daughter. Technically, even though your daughter is living in Florida while going to school, because she is your dependent, she is considered to be a resident of your household.

  1277. Jan Roberg on Sun, 9th Feb 2014 4:12 pm
  1278. Hi Stephen,
    File the returns in the way that you pay the least amount of taxes. It seems reasonable to file separately with your state returns–unless it makes you pay more in taxes.

  1279. Emma on Wed, 12th Feb 2014 7:50 pm
  1280. Hi Jan,
    I worked in NY till June 2013. I was looking for jobs and moved to PA in December. My start date for my new job in PA is in March 2014. So basically I did not have any income and have been living on my savings until now. How do I go about filing taxes? I know I will be filing for NY state tax. I have no income/W2s from PA since I have not worked here. Should I still file for PA state taxes? Thanks

  1281. Jan Roberg on Wed, 12th Feb 2014 8:59 pm
  1282. Hi Emma,
    Since you had no income in PA at all, you may as well just file New York taxes. Now, because you have a PA address, you may get a letter from PA asking you why you didn’t file a PA tax return. You just sign a little statement that says you had not PA income in 2013 but filed for the state of New York. That’s all you need to do (and that’s only if you get a letter in the first place.)

  1283. Karey on Thu, 13th Feb 2014 12:29 pm
  1284. My husband is active duty army. Both our home of residence is MA but we are stationed in NC. He pays state taxes to MA and I thought I was too but my employer was taking out NC taxes instead. How do I file? I’m guessing I file resident to MA and non-resident to NC, but what about my husband? He only paid to MA so how do I separate it when filing so we are not paying both his state taxes and my state taxes to both states?

  1285. Michael - NYsalestax.com on Sat, 15th Feb 2014 3:17 am
  1286. I think we have to remember that each region has its own rules. Where we live in and we work in, we have to read all information about the state we want to go clearly. Moreover, paying taxes is a sensitive case so that it needs a proper calculation.

  1287. Jan Roberg on Sat, 15th Feb 2014 7:17 pm
  1288. @Michael,
    You’re so right!

  1289. Jan Roberg on Sat, 15th Feb 2014 7:46 pm
  1290. Hi Karey,
    I believe you’re dealing with the Military Spouse Relief Act. I’m going to attach a link that will help you: http://www.dornc.com/taxes/individual/armedforces/faq_spouses.html

    You shouldn’t be paying taxes to North Carolina, as you and your husband both are residents of Massachusetts. While there are some exceptions to that, I don’t think you’ve got one of those exceptions.

    You will need to file a North Carolina return in order to get a refund for the taxes that were withheld from your paycheck.

    Do read the link I put down, it gives you exact instructions as to how to file your return to get your refund.

  1291. Maria G on Tue, 25th Feb 2014 4:11 pm
  1292. My husband and I are resident in AK. We moved here in IL and I got a job for 2 months here in IL (2013) while my husband worked overseas after retirement from military service (2013). I am left here in IL for the whole 2013 while he’s gone to work overseas. My question is, do we need to file a non resident state tax? If we do, is my husband’s income overseas (since we file jointly in our federal tax) be included in our filing of state tax here in IL? Or should I file a separate state tax?

  1293. Jan Roberg on Thu, 27th Feb 2014 6:06 am
  1294. Hi Maria,
    It sounds to me like you are a resident of Arkansas but you are temporarily living in IL, is that correct? But if you were in Illinois for the entire year, that makes you an Illinois resident. If you were only there for a few months–you’d still be a non-resident.

    So you should file a resident tax return for Illinois.

    But, I’m thinking your husband’s income should still be attributed to Arkansas. If your main home is there and you intend to move back into your home, that’s where he should be taxed. But, unlike the military, if you moved to Illinois, really moved, you don’t own a house in Arkansas that your’re going back to–well then that’s going to be his home state also. So he’ll be an Illinois resident too. That said, since your husband is out of the country for the entire year, you may be able to exclude some of his income using form 2555. And that would also exclude that income from Illinois as well.

    If you don’t know about form 2555, here’s a link: http://www.irs.gov/pub/irs-pdf/f2555.pdf

    You might want professional help with this form. I do this for lots of military guys working overseas after retirement. This is a really important form for you. It will save you lots of money on your taxes.

  1295. Caleb on Sun, 2nd Mar 2014 8:17 pm
  1296. Hello,
    I currently work in CT. I have an OK driver’s license and purchased a home there where my family lives. I also have a temporary rental in NYC where I live part of the time to commute to work.

    I obviously want to file OK resident taxes, and I wanted to hear your thoughts.

  1297. Jan Roberg on Sun, 9th Mar 2014 8:17 pm
  1298. Hi Caleb,
    What I’m hearing as I read your question is, “I’m living in NYC and commuting to Connecticutt for work.”

    So without any additional information, I’d say you’re filing as a NYC resident, not an Oklahoma resident.

    Lot’s of people own homes in other cities, but if you don’t actually live in Oklahoma, then you can claim Oklahoma residency.

    How temporary is that rental you’ve got? You might have a case there. But if your job in CT is a temporary job–a genuinely temporary job, then you may be able to claim all of your temporary living expenses as an employee business expense deduction.

  1299. Amanda on Fri, 14th Mar 2014 3:21 pm
  1300. Hi Jan,

    We own a rental property in Rhode Island but live in California. We’ve been California residents all year in 2013 (in 2012 we were partial year residents of each state and filed returns in each). I’ve completed our federal taxes, and we have a net loss for the rental property in 2013. We have no other income that would be attributed to Rhode Island this year. Do we need to file a Rhode Island state return?

    Thanks,

    Amanda

  1301. Andy on Sat, 15th Mar 2014 12:59 pm
  1302. I live in MA and work for a firm with offices in RI and NH. My principle office is RI, and so RI withholding is taken from my paycheck. Beginning in 2013, my working routine was such that I worked on average about 1 day per week in RI, 3 days a week in NH and 1 day from home (in MA).

    Questions:
    (1) Since my work from home days were an informal arrangement, should I apply them to RI or MA?
    (2) Should I file a return in NH, even though they don’t have a state income tax?

  1303. Julie on Wed, 19th Mar 2014 8:52 pm
  1304. I live and work in Virginia as a teacher but over the summer I worked a camp in Ohio and the school sent me a w-2 with state and federal tax withheld. I only made $1000. Do I need to file a Ohio nonresident return?

  1305. Jan Roberg on Sun, 23rd Mar 2014 8:51 pm
  1306. Hi Amanda,
    I would not file a Rhode Island state tax return for 2013.

  1307. Jan Roberg on Sun, 23rd Mar 2014 9:08 pm
  1308. Hi Andy,
    Since New Hampshire doesn’t have an income tax, you can’t file a New Hampshire income tax return.

    I’m guessing that your company pays you based on all of your working days being in Rhode Island so that’s how your withholding was done.

    You’re going to pay tax in Massachusetts on the income that you earned while working in New Hampshire, even thought NH has no state income tax.

    You’ll also get a credit in MA for the tax that you wind up paying to RI.

    You’ll need to allocate your income to make sure it’s all attributed correctly.

  1309. Jan Roberg on Sun, 23rd Mar 2014 9:56 pm
  1310. Hi Julie,
    You only need to file an Ohio return if there’s Ohio withholding and you want a refund.

  1311. Carla on Thu, 27th Mar 2014 4:14 pm
  1312. Jan,

    I am a bit confused and wondered if you could assist me? I am a real estate agent and get a 1099 for taxes, I work in MA, but live in NH. I am licensed in MA and NH and about half of my income comes from home sales in NH, but the office pays me in MA.

    I am all set with NH as they do not have a state tax, however I have been told I do not have to pay MA tax as I get a 1099. If I do have to file MA taxes can I break down the money I made in NH sales and only pay MA tax on the sales I made in MA? Since my office is in MA, all of my income is paid from the MA Keller WIlliams office.

    Please email me your thoughts as I don’t want to not file when I should have and have it come back to haunt me in years to come.

    Thank you
    Carla

  1313. Sam on Wed, 2nd Apr 2014 4:40 pm
  1314. Hi Jan

    We moved to California in 2013 and i worked the last week of December 2012 in Massachusetts, for which i got paid in 2013.Do i need to file Mass.state tax or should i just file my california state tax.
    Also I have a rental property in Massachusetts, do i have to pay mass taxes for that property even though i still have a mortgage on it.
    Please let me know.
    Thank you
    Sam

  1315. Sean on Thu, 3rd Apr 2014 9:04 am
  1316. Hi Jan, First off let me say this site and blog is a great source of information and I thank you in advance for providing direction to others and hopefully myself.
    My situation is:
    Lived in MA 1/1-9/30 = 75%
    Moved to and now live in UT: 10/1-12/31 = 25%
    Earned MA income while in MA
    Earned UT income while in UT
    But continued to earn MA source income after having moved to UT (severance pay from prior MA employer and a small amount of MA unemployment paid after becoming UT resident).
    I’ve concluded this means I need to file MA as part-time resident AND non-resident; and UT as a part-time resident.

    It looks as though I’ve got my normal W2 income allocated correctly (or close enough) between the two states; however, the issue (with the tax software it would appear) is that interest, cap gains, and unemployment – even though they were allocated based on time in each state (75% & 25%)- are showing up as 100% taxable on MA and 25% taxable in UT. My question: Are 100% of these really taxable in MA (at least some cap gains came from sales made after having relocated to UT) or is the software not using my allocation correctly? If 100% are taxable in MA, then I assume I would just calculate what the MA tax on 25% of them are and enter as a credit on UT (as the software is only considering 25% taxable by UT)?

    I also converted my home in MA to a rental property as of 9/1 (1 month prior to my relocating). The software appears to have done ok with this (I did have to do the math by hand on how much interest deduction went to personal deduction (1/1-8/30) vs. was entered in the property section of the return (9/1-12/31)), but my question is: it’s only be reflected on my MA return; does the rental income for the period of 10/1-12/31 need to be reported to UT (and thus I would take a credit on UT for this specific tax paid to MA)?

    Should I really attempt to allocate the amount of MA source income during the period of 10/1-12/31 to UT? Or will it just complicate matters and should I rather just let MA tax based on MA W2 income and let UT tax based on UT W2 income?

  1317. Tina on Thu, 3rd Apr 2014 11:01 am
  1318. My husband and I live in New York State but he is employed by a company in Virginia. He travels there 3 days a week and the remainder of the week he works ‘remotely’ from our home.

    Do we need to file a NYS resident and a VA non-resident? Are the travel expenses to Virginia for the 3 days taxable income?

  1319. Sean on Thu, 3rd Apr 2014 1:12 pm
  1320. Figured out question #1 after more than a few hours on the phone with the software vendor…it was indeed an issue with their software. Still curious on questions 2 & 3 though…
    Thank you.

  1321. Anand M on Fri, 11th Apr 2014 10:12 pm
  1322. Hi, I need your input on my condition. me and my family ( spouse and childern) are living in rented aprt in MA for entire 2013. However as part of my consulting job I had to move to TX from Aug 2012 till Jan 2013. So I was living in both state ( MA on weekend and Tx for weekdays). since I show my TX address ( living on paying guest with no lease) on my payroll hence my emplyer did not deduct any Income tax since TX does not have any income tax. However since feb 2013 I am working in MA only. now my question is: 1) Will I be consider as MA resident or Part-yr resident in 2013 2) If I’m a resident do I need to show my Teaxs income while filing MA state return. If yes do I need to pay MA state income tax on my TX income

  1323. Mark S. on Sat, 12th Apr 2014 6:08 pm
  1324. Hi Jan,

    I’d like to know if my income and expenses for a rental property in NC should be shown on the NC tax filing form.

    I moved from NC to CA last year and just filed my taxes locally in CA as a part-time resident/non-resident for both states.

    I own a house in NC for which I rented out toward the 2nd half of last year. With all costs involved, there was no profit for last year, and in fact, there was a loss.

    The tax professional who filed my taxes electronically indicated that I owed a significant amount to federal and a smaller amount to NC, but I was receiving a small return from CA.

    The next day I was reviewing the filed tax forms and noted that my rental property income and expenses are listed only for the CA return, but not anywhere on the NC tax forms.

    I contacted the tax preparer who reviewed again and told me to not pay any taxes because the rental property expenses did not get put into the federal tax forms.

    Two days later, I was asked to go back to review and sign the amended forms for federal, NC, and CA taxes.

    I was told by the preparer that I will now actually receive a tax return from federal and both states.

    Here is the problem though. When I review the NC form which shows my taxable income for last year, it’s showing my portion of income as listed in my federal W2 from my employer for the period I lived in NC.

    I still don’t see any further income listed, i.e. my rental income and I also don’t see the corresponding expenses for the rental listed.

    I asked the tax preparer about this and was told that I don’t see it, but it’s all done behind the scenes in the system after all data is entered into the tax filing software.

    If the negative amount from the loss were added to my income as stated on the W2 for when I lived in NC, the amount would be significantly less. I think that my NC tax return would then be higher. As it stands, the NC tax return amounts to the cost of a cheap dinner.

    Sorry for all the background details, I just have never had a rental property before and also this is the first time that I filed taxes for two different states.

    Thanks,
    Mark

  1325. Anna on Wed, 16th Apr 2014 8:43 am
  1326. I live in another state (NJ) and work in New York. My spouse neither lives nor works in New York (lives and works in NJ). We filed a joint federal income tax return and are married, filing separately for NJ and NY. My question is, on the NY non-resident return, for federal gross income, can I put only my income so my spouse’s income is not taxed in NY?

  1327. Aariel R on Thu, 22nd May 2014 6:31 pm
  1328. Hi, I live in California and work remotely for a job based in Illinois. I have been filing in both states-paying taxes to Illinois and claiming a credit in California. Now I am pregnant and would like to claim SDI for when the baby comes. I see that SDI has not been withheld from my paychecks (since they come from Illinois), and I am afraid I won’t get that benefit. Am I supposed to pay so much tax to Illinois (even though I have never been there?) Shouldn’t SDI have been withheld since I live in CA?
    Thanks for your help,
    Aariel

  1329. Jan Roberg on Sun, 25th May 2014 8:09 am
  1330. Hi Aariel,
    Congratulations on your pregnancy! I figure I should get the important part out of the way.

    Okay, the work stuff. Technically, you don’t work in Illinois so you shouldn’t have to pay Illinois taxes. What they should be doing is withholding California taxes for you.

    That’s should–clearly that’s not what’s been happening.

    I see that all the time. A company isn’t registered to do business in a certain state so they just withhold the taxed for the state they are located in and then people file the way you filed your taxes.

    That seems to work just fine and dandy until a person has a problem like yours–because your employer hasn’t been paying into the state system–no California SDI has been withheld for you.

    So–you’ve got a bit of a balancing act to follow. You see, your company did wrong–athough probably not intentionally. But if you report them, you might lose your job. Also, it’s SDI withholding–so repairing the situation may also require a pay in from you since technically–you should have been paying the SDI out of your wages.

    See what a mess this is?

    I suggest you do some research first. Here’s where to start: http://www.edd.ca.gov/ That’s the California SDI website.

    But you’re going to need to make some calls. You need to know:
    1. What are you entitled to right now with no changes to your SDI?
    2. What would you be entitled to if payments had been properly made?

    Because quite frankly, if it wouldn’t make a difference, then fighting wouldn’t be worth your while.

    But let’s assume that it is worth fighting for: Now you’re armed with what the value of the SDI really is. Then you have a “friendly” discussion with your employer. “Hey, I’ve discovered that you should have been withholding my California SDI…” Remember, any fair discussion with your employer will include you ponying up your share of the withholding.

    Maybe the penalties, or other fees for operating in California may be too high for them. They might consider paying you for the disability you’re losing out on. Keep that open as an option for them.

    If all the friendly options fail, you could “tell on them” to the state agency. Let the state go after them for the SDI. I really hate that option. 1. You can pretty much guarantee you won’t work for them again, and 2. you can guarantee they won’t be inclined to give you a good reference. Suing your employer is not something you ever want to mention in a job interview either.

    One last thing, you might want to find out if you qualify for unemployment benefits from Illinois if your employer lays you off. It’s something else to think about.

    Sorry I didn’t really answer your question, I just gave you a bunch more questions to ask. Good luck.

  1331. Jan Roberg on Mon, 26th May 2014 6:50 am
  1332. Hi Carla,
    I believe that you should pay tax to Massachusetts on the income that you earn in Massachusetts.

  1333. Jan Roberg on Mon, 26th May 2014 3:31 pm
  1334. Hi Sam,
    You probably don’t have enough income in Massachusetts to be required to file a return, but if you had MA withholding, you might want to file a MA return just to get the refund.

    I assume that you are filing a Schedule E with your federal return for your MA rental income. If you have net income, then you should file a MA return, otherwise I wouldn’t bother.

  1335. Jan Roberg on Mon, 26th May 2014 4:30 pm
  1336. Hi Sean,
    bottom line–put your Mass income on your Mass return and your Utah income on your Utah return. It’s the best solution for you.

  1337. Jan Roberg on Mon, 26th May 2014 4:35 pm
  1338. Hi Tina,
    You will file as a New York resident and a Virginia non-resident. The reimbursements your husband receives for his travel expenses are not taxable as I’m guessing that they are an “accountable” expense. That means, his company reimburses him for his actual expenses and that he provides reciepts to them for the reimbursement.

    If that’s not the case, then you would file a form 2106 to claim the expenses as a deduction to offset the “per diem” payments he’s receiving from his employer.

  1339. Aariel Rowan on Tue, 27th May 2014 8:26 pm
  1340. thank you for your advice! I appreciate you taking the time to respond so thoughtfully.

  1341. Jan Roberg on Sun, 1st Jun 2014 9:44 am
  1342. Hi Anand,
    You and your family live in an apartment in Massachusetts. Now, you’ve been working in Texas–but the operative part of your statement is “you and your family live in Massachusetts”.

    You will file a Massachusetts tax return and pay tax to Massachusetts on the income you earned while you were working in Texas.

    That said, did your employer pay you a stipend or reimburse you for your expenses for the time you were in Texas? If not, then you may be able to claim a deduction for your temporary liviing expenses. While you didn’t pay for an apartment, you did have meal and entertainment expenses. It’s possible that you may have a deduction to claim on form 2106 Employee Business Expenses. It’s worth looking into.

  1343. Jan Roberg on Sun, 1st Jun 2014 10:01 am
  1344. Hi Mark,
    Hmmmmm. Although it sounds funky, your taxes might actually be right. I know it sounds weird, but let me explain.

    You say that you actually had a loss on your NC rental property. But when you look at the NC return, it doesn’t show up at all.

    Not looking at the return, my best guess is that you had something called “Passive Activity Loss Limitation”. You’ll know this is the case if you’ve got a federal form 8582 in your federal tax packet. Basically, if you had income over $150,000 you probably had a passive activity loss limitation.

    If that’s the case, then the amount you’d see on your rental income (loss) would be zero and your income tax preparer did the return correctly.

    If your income was not at the level or higher, then you might want to have a little sit down and have her really explain what everything on your return means and how it flows.

    Here’s the thing–there are schedules and stuff that don’t actually show up on the tax return. Fine–but your preparer should be able to either print them out and show them to you OR she should be able to do them by hand and show you why your figures didn’t show up on the return.

    If she can’t do that for you, I recommend you find yourself a new preparer.

  1345. Harry P. on Tue, 1st Jul 2014 1:29 pm
  1346. Hi – My wife has her employer in NY; she is a consultant and worked in WA and TX all of 2013 (except for maybe 2 weeks of stay in NY for meetings). Her address and residency are in TX. Her company withheld taxes based on her out of state status. My company takes care of our filing since I travel and work internationally, and they hired professional tax consultants who claimed that her NY state taxes were withheld at a very low percentage, and we need to pay about $5K more bringing the state tax to about 6.8% of wages. This does not seem right.

  1347. Jan Roberg on Sat, 5th Jul 2014 2:07 pm
  1348. Hi Harry,
    I agree with you. Your wife should only be taxed for the two weeks that she actually worked in New York. I realize New York taxes are kind of high, but $5,000 for two weeks of work is awfully steep. (Is she a rock star or something like that?)

    They should be filing her as a non-resident of New York and do the income allocation sheet showing the amount of money she actually made there. Once they do that form the numbers should be much better. (Unless she really is a rock star and makes that kind of money!)

  1349. george on Sat, 12th Jul 2014 9:24 am
  1350. Hi maybe you can help me with this question.

    I have a client in Queens New York who has live here for the entire year of 2013.He also work here the whole year and received a w2 ,,he also received unemployment compensation from the State of California for which the income received from unemployment is tax exempt on the State level.

    My question is why does he have to pay income tax here in the state of New York on the state side for his unemployment wages he received from California?

  1351. Jan Roberg on Sun, 13th Jul 2014 7:23 am
  1352. Hi George,
    I just prepare tax returns, I can’t explain the logic of the legislators who made up the rules. Logic and taxes are words that don’t go together.

    This is the best I can do: when you are a resident of a state, the state taxes your “countrywide” income and when you’re not a resident, the state taxes the income you earn within the state.

    Now when you earn income outside of the state, you get a credit for the tax that you pay to that other state.

    Now in your client’s case, he was paid the California unemployment while he was living in New York. So New York is taxing his “countrywide” income. Just because California doesn’t tax it doesn’t mean that New York is going to give him the same deal.

  1353. Melinda M on Wed, 16th Jul 2014 12:16 pm
  1354. I have a question, if I am a legal resident of Florida (active duty military stationed in VA) and own an LLC in state of VA will I lose my ability to not pay VA taxes on my military pay. I know I will have to file the LLC taxes in state of VA (don’t expect revenue though until 2016 as there are a lot of start up costs and I won’t be fully up and running until I reitre). I do plan on returning to Fl when I retire and having the businesses in both locations. However I can’t start the Fl LLC until I have an address there which won’t occur until my retirement in 2016.

  1355. farman on Wed, 16th Jul 2014 4:19 pm
  1356. i work and live in california because of my job ,and my wife lives in Arkansas,i am filing my stats and fedral in california as married filling seperately, i just want to put my family home adress in arkansas on my fedral return which is different than the adress on my W2. can i do that?

  1357. Samantha on Tue, 22nd Jul 2014 4:59 pm
  1358. I live in California but work in Florida. Since Florida does not have a state tax how would I set everything up correctly to not be slammed at the end of the year by having to file a 1099 for California state taxes?

  1359. Rachel on Tue, 5th Aug 2014 3:23 pm
  1360. Hi,
    I recently graduated from a university in NJ. During my time in school my parents were supporting me making me their dependent (they live in California). I’m starting a full time position in NYC so I’m confused about how to go about my residency status. Since I technically am their dependent for the year after being in school for the first 6 months of the year, my permanent residence has been California. Now that I’m permanently living in NJ and working in NY do I need to change my residency to NJ? Will I have to fill 3 separate state returns this year?
    Thanks.

  1361. Jan Roberg on Sun, 10th Aug 2014 11:38 am
  1362. Hi Anna,
    Your husband’s income won’t be taxed in New York whether you file jointly or separately as he doesn’t live or work in New York.

  1363. Jan Roberg on Sun, 10th Aug 2014 11:42 am
  1364. Hi Melinda,
    You’ve got a lot of issues here.

    First, you will still have your military income exempt in VA, you only have to pay tax in VA on the non-military income you make.

    Your LLC I’m guessing will be taxed on your 1040 on a Schedule C tax form. Since you have a loss, you won’t have tax and it may actually reduce your federal taxes.

    I think you need to sit down with a professional–when people say things like LLC taxes–it’s time to talk to someone. Good luck. And thank you for your service.

  1365. Jan Roberg on Sun, 10th Aug 2014 11:45 am
  1366. Hi Farman,
    I put an address on tax returns that’s different from the W2 all the time. People move. That said, if you put an Arkansas address on your federal return, expect to get a letter from Arkansas asking why you didn’t file an Arkansas return.

  1367. Jan Roberg on Sun, 10th Aug 2014 11:47 am
  1368. Hi Samantha,
    I would just make estimated tax payments to the state of California. That’s the easiest thing for you to do.

  1369. Jan Roberg on Sun, 10th Aug 2014 11:54 am
  1370. Hi Rachel,
    So your parents are still claiming you as a dependent so you are “technically” living in California. If that’s the case, I’d file as a California resident and New York non-resident. Then, starting in 2015 I’d have you be a New Jersey resident and NY non-resident.

    That said, you might want to talk to your parents about claiming yourself for 2014. See how the taxes work out. It seems to me that you’re supporting yourself which is different from someone who graduates and doesn’t have any income. You and your parents should at least look at the big picture together and see what’s best for the family. (Yeah, it’s definitely better for you to claim yourself–but it’s often much better for parents to claim their kids–but not always. At least look at the numbers together.)

  1371. Kevin on Mon, 11th Aug 2014 7:30 am
  1372. Hello,
    My wife and I are considering moving from NY to NC on November 1, 2014. We are thinking of renting out our home in NY and simultaneously renting a home in NC in which we will reside. The intent is to do this for one year in order to determine if we want to move to NC long-term and to also hedge our bets; if we don’t like NC we will move back to our current home in NY. Some other pertinent info:

    1. The home in NY is the only home we own. We still have a mortgage on the home and pay some of the highest property and school taxes in the nation, percentage wise.
    2. We will be moving all of our belongings to NC
    3. Our children will be enrolled in elementary school in NC
    4. I will be keeping my current job with a multi state employer. I will remain a NY employee working remotely out of NC for internal cost center purposes, even though my company has an office location in NC. I will likely spend about 2 weeks per year traveling to states outside of NC for work and the remainder of the time I will be working out of a home office in NC.

    We are trying to determine the high level tax implications of this move. Clearly I will pay NY taxes while living in NY but what happens when I get to NC?

    1. will I still pay NY taxes on my employment income?
    2. Will the NY rental property be taxable in NC?
    3. From a tax perspective does it make more sense to move to NC as of January 1, 2015 instead of November 1, 2014?
    4. If after one year we decide to sell our home in NY and to buy one in NC, what will the tax implications be assuming we sell for $150,000 more than we paid for the home?

    Thanks in advance for your assistance!

    Kevin

  1373. Amanda on Sat, 23rd Aug 2014 12:43 am
  1374. So I lived in NJ for all of 2009. Moved to NC in 2010 in January. We didnt file a NC state return because we didn’t live in NC in 2009. but now the state says we owe them 1400 for tax tear 2009. How is that? do we owe for just moving?

  1375. Jan Roberg on Sun, 24th Aug 2014 6:11 am
  1376. Kevin,
    You want to consider the high level tax implications of your move, right? Serioiusly, you should sit down with a professional and pay the fee to get some high level answers. You’re asking questions for a sit down type consultation meeting. And that’s what you really need.

    But, here’s some quick and dirty answers–but seriously. Spend the money and talk in person to a professional. It will be worth it.

    1. Technically, you should pay your employment taxes to NC once you move to NC.
    2. Your NY rental property will be taxable to NC if you claim NC residency. Not if you claim NY residency.
    3. It doesn’t matter when you move for the taxes. Do what’s right for your family and yourself.
    4. Since the home was your main residence for at leat 2 of the past 5 years, then you will still be able to exclude the gain on the sale of the home.

  1377. Jan Roberg on Sun, 24th Aug 2014 1:00 pm
  1378. Hi Amanda,
    No you shouldn’t owe NC for tax year 2009. What happened is that when you filed your federal 2009 tax return, you have your NC address on it so that’s why NC thinks you owe them money. All you need to do is to send NC a copy of your NJ tax return with a letter explaining that you did not have taxable income for NC for 2009.

    Call them and talk to them, explain what the situation is, but I’m guessing they’re still going to have you send them the documentation.

  1379. Eric on Tue, 26th Aug 2014 2:55 pm
  1380. Hi Jan,

    My wife want to move to NC for a few 2-3 years to see if we like it. She works from home in DE and her company headquarter is located in MD. The company is taking taxes out based on her working and living in DE. We will keep our house and will probably rent it out.

    How should we file taxes as renters? What forms will my wife need to change with her job? Is it be easier for to move in Jan 2015 for tax filling?

  1381. Jan Roberg on Sun, 31st Aug 2014 7:24 am
  1382. Hi Eric,
    I’m originally from Minnesota so the idea of moving in January sounds kind of crazy. Moving furniture when it’s 30 degrees below zero–just the thought of it makes me shiver.

    Oh, but you’re talking about North Carolina! Might not be a problem.

    But the bottom line is, although your taxes might be a little easier moving on January 1–it won’t make that big of a difference. So do what’s easiest for your life–not the tax return.

    What will happen is that your wife will now be taxed as a North Carolina resident–so her company should withhold NC taxes instead of Delaware.

    You’ll still file a DE return because you’ll now be a landlord and claiming rental income. (Although with depreciation and other expenses you’ll break even or maybe even claim a little loss.)

    So, let’s say you move now–this year you’ll file a “part-year” NC and a “part-year” DE return. Next year you will file a NC resident and a DE non-resident return.

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