Hello,
I have tried to research this, but I can't find a Q&A on my situation exactly so apologize if this is a repeat.
I have 2 unusual events this year: This year I and my fiancee are both concluding positions in CT, getting married, taking a month break for a honeymoon, and then moving and starting jobs in TN. My question is how exactly this will affect my taxes as we both have multiple sources of income, some of which require estimated taxes in CT.
From my understanding it will be best for us to file jointly as this will simplify things. TN has no income tax so that makes it easy. Should we pay our estimated taxes in April 15, June 15 separately on our own 1099-miscs to CT and then add that together for the joint return end of year in a part-year return to CT? Do I only pay 2 quarterly estimated tax payments even though there are normally 4? I plan to declare residency in TN as soon as we move and will be making no income in CT for July onward during the honeymoon before the move in early August. Couldn't find a clear answer from google on if CT will complain that they only got 2 estimated tax payments when I will not declare residency until August, but at least on the income side there is no income in CT other than a dividend or two in July onwards so if I break it down by paystub date it should be straightforward. I use TurboTax premier for my rental and self employment income. Usually for estimated taxes I just pay 4 payments of 1/4 of what I paid last year, but because of the move and a higher than normal tax bill last year I would overpay my CT tax by nearly 3x if I did it this way. Plus if I make estimated payments after my move I worry they may claim I didn't actually move. I think I should pay 2 payments of 100% of what I estimate I will owe, though it is difficult to tell what tax rate they will assign me exactly as the new job in TN will be high paying but I wont' know the exact amounts we will be getting until after April 15, which is when the first estimated payment is due.
Is there anything else about my situation that I should know since we will be switching to married filing jointly? I don't think I have questions on the Federal tax side because I am just paying in estimated taxes 1/4 of what I paid last year, however, if there is some special rule where we have to pay 1/4 of our combined previous income please let me know.
