Multi-State Tax Returns

Preparing multi-state tax returns is tough.

It isn’t always easy preparing your taxes when you’ve worked in more than one state. We can help you get it right!

 

 

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 multi-state tax returns.  If these tips don’t solve your problem, do call us and get some help.  They’re not always easy to handle and we do this for a living.

894 thoughts on “Multi-State Tax Returns

  1. 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?

  2. 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

  3. 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.

  4. 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.

  5. 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

  6. 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.

  7. 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.

  8. 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.

  9. 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%?

  10. 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?

  11. 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.

  12. 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.

  13. 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.

  14. 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?

  15. 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.

  16. 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??

  17. 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!

  18. 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.

  19. 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!

  20. 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.

  21. 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.

  22. 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.

  23. 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?

  24. 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!

  25. 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

  26. 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.

  27. 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???

  28. 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.

  29. 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.

  30. 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.

  31. 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.

  32. 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.

  33. 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?

  34. 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.

  35. 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

  36. 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.

  37. 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.

  38. 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.

  39. 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

  40. 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.

  41. 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.

  42. 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)?

  43. 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..

  44. 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.

  45. 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?

  46. 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.

  47. 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.

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