You are correct about both of those states. It is being taxed as income. However if it actually cost more than the reimbursement, it might help your state taxes.
You will enter the information in the federal form, even though it won't count on federal. That information will flow to the states. The state interview might ask some questions about moving expenses or reimbursement. You should apply moving expenses to the state you moved to.
Here's how:
- Federal
- Deductions & Credits
- Other Deductions & Credits
- Moving Expenses
