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Income Tax Question  
User currently offlineUAL Bagsmasher From United States of America, joined Sep 1999, 2146 posts, RR: 10
Posted (9 years 3 weeks 10 hours ago) and read 1163 times:

I have a question for all you accountant types on this forum. Here is the scenario:


I currently reside and work in State 'A.' (I have for all of 2005.) In October, I will be moving to and living in State 'B.' While living in State 'B', I will be working in State 'C.' Now the question. Come Spring of 2006, how do I file my taxes? Thanks in advance.

3 replies: All unread, jump to last
 
User currently offlineHalls120 From , joined Dec 1969, posts, RR:
Reply 1, posted (9 years 3 weeks 10 hours ago) and read 1155 times:

Quoting UAL Bagsmasher (Thread starter):
I have a question for all you accountant types on this forum. Here is the scenario:


I currently reside and work in State 'A.' (I have for all of 2005.) In October, I will be moving to and living in State 'B.' While living in State 'B', I will be working in State 'C.' Now the question. Come Spring of 2006, how do I file my taxes? Thanks in advance.

With the assistance of several good glasses of beer.... Wink

I'm not an accountant, but have been faced with a similar scenario in the past.

Depends on the states involved, but in general, you will file your state taxes as a resident in State B (and pay taxes there only on the income earned while a resident), since that is where you will be domiciled. You will likely pay taxes to State A for the period you lived there (and have to file a non resident return in State A). What really screws things up is State C. If they decide to tax you, then you'll have to file a nonresident return and pay taxes there for the time you worked there. You should, however, be able to receive either total or partial credit in State B for the taxes you paid to State C.

In other word, you might want to seek the services of a good accountant. I file my own returns using TaxCut software, but I'm not sure this software could handle your situation.


User currently offlineSpinzels From United States of America, joined Jun 2004, 328 posts, RR: 0
Reply 2, posted (9 years 3 weeks 9 hours ago) and read 1145 times:

Halls120 is exactly right.

My situation was identical to yours UAL_bagsmasher:

In the year 1999, I was in PA from 1/1 to 4/1, when I moved to the City of New York, but was working for a NJ-based employer (i.e., paid withholding taxes in NJ).

So in April 2000, I filed the following returns:

(1) A PA resident return covering the period 1/1 to 4/1;
(2) A NJ non-resident return for the period 4/1 to 12/31;
(3) A NY resident return for the period 4/1 to 12/31.

(All of the income taxes I paid to NJ, I was allowed to credit against the taxes I owed to NY)

Your situation may vary depending on the laws of states A, B, and C. However, please be careful of one thing: typically you will pay no taxes in state B as you earn your taxed income (because your employer only withholds for state C); so state B may require you to pay an estimated tax on your income as you earn it, and may assess a penalty on you if you do not.

BTW: I know from another thread that your state C is PA. If your state B is NJ, then life is going to be fine, NJ/PA have a terrific reciprocity agreement; log on to their revenue department web pages and read more…but do it now!



I've been to Paradise, but I've never been to me
User currently offlineUAL Bagsmasher From United States of America, joined Sep 1999, 2146 posts, RR: 10
Reply 3, posted (9 years 2 weeks 4 days 9 hours ago) and read 1099 times:

State "B" is going to be Delaware. I don't know what kind of agreement they have with PA.

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