I partially own a business in Virginia where I am an employee (S-Corp) and earn both employee income (W-2) and a share of the profits (K-1) and will be moving next year outside the state. Let's use NY and FL as potentials. How does this impact your state taxes? (Using NY and FL as an example since NY has higher state taxes and Florida has no income tax).
Given this scenario, let's say there are 3 forms of income:
- W-2 from the company in Virginia
- K-1 from the company in Virginia
- investment income
How are you then taxed? i.e., If I move to NY, I assume I fill out NY state tax forms but will I pay state tax on all 3 forms of income? If I move to FL, what happens?
