RobertB4444
Employee Tax Expert

Get your taxes done using TurboTax

First, the bottom of your husband's W2 will list the income earned by state.  If it lists all of the income as New Jersey income then you'll need to do some math.  If it lists some as New Jersey and some as South Dakota then the math has been done for you.

 

When you do your taxes you will need to do a part-year return for New Jersey.  You will put the dates on there that you left the state.  Since South Dakota does not have an individual income tax this will be the only state income tax return you will have to do.

 

The New Jersey return pro-rates your income based on the percentage of time that you lived there but takes the entirety of your income into account when calculating your taxes.  So it's taxed at a higher rate than most states.

 

Very important going forward - you need to make sure that your husband has his employer classify his income going forward as South Dakota income.  New Jersey does not tax out of state remote workers for New Jersey sourced income so as long as his employer classifies the income as paid to him in South Dakota then there will be no New Jersey withholding and you won't have to file a New Jersey return for 2024.

 

@DNAZMTSD 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"