If you have worked in two
different states, or if you move to a new state it can be a bit confusing
figuring out the correct way to file your taxes. In this particular case, your
there is little change in filing your federal tax return; but the tax return for
the two states are affected. Whether you decide to use a tax professional or
file the returns on your own, you will need to complete income tax forms for
both states. Completing the returns will depend on your residency, the income
amount, and your filing status.
Income
Amount
Make sure that you have
earned enough in another state to need to pay taxes on the amount you earned. You
will need to report the amount earned in your resident state as another source
of income.
Determine
Your Residency
Once you determine your
residency, you must file a resident tax return in your state of residency and a
non-resident tax return in the other state. To establish residency you must
show that you have your primary residence in that particular state by
registering to vote, registering vehicles there, and moving primary bank
accounts to the resident state.
Determine
if You Qualify as a Part-Year Resident
Part-year resident tax forms take into account that
that you permanently changed your residency to a new state that year. In this
case, you will file a part-year return in both states and your exemptions will
be pro-rated based on the amount of time you spent as a resident in each state.
Determine
if You Will File Singly or Jointly
If
you are filing jointly and one person was a part-year resident, you will need
to file using a part-year form in both states.
Obtain Appropriate Tax Forms
If
you are preparing your own tax returns, go to the Department of Revenue website
of both states to obtain the appropriate forms for your situation.
Complete the Appropriate
Forms
·
If
you are filing as a resident, but you have received income from another state,
you will report the income on the "Other State Tax Credit" portion of
your income tax form. Check your W-2 to make sure you accurately report your
income and taxes paid. Although you are required to pay tax on all income
received, even if it is from other states, you will likely receive a credit on
your resident state taxes according to how much you already paid in the other
state. You will also need to file as a non-resident in the other state.
·
If
you are filing as a non-resident, then you will be asked to report income on
the non-resident form. You will be required to pay tax according to what was
made in that state; however, you may be able to get a tax credit in your
resident state according to what you pay in non-resident taxes.
·
If
you are filing as a part year resident, you will report your total federal
adjusted gross income and the portion that was made in the state. You will
receive a prorated percentage of the deduction, according to the percentage of
your taxable income that was made in the state.
Submit Your Forms
Complete and mail or e-file both state tax returns
and your federal tax return before the due date.
