@laceysharpe wrote:
Thank you for the responses! I am surprised at how complicated this is and that I may have to pay multiple states tax on the same money :(
If done correctly, you claim credits that offset the tax, so the net tax is equal but not more than the higher taxed state.
For example, assuming I am correct and you report 100% of your new job (including the bonus) in NC, and you also report 3/85th in VA and 7/85ths in MD, you will claim a credit on the NC return for the tax you paid in MD and VA. (This requires that you calculate the other states first and NC last.) And if CA and NC both tax the bonus, CA should give you a credit for the taxes you paid in NC on the bonus.
You may want to see a professional this year since you have 4 state returns to prepare. Turbotax can do 4 state returns with one federal return, but the question of how to properly allocate your income (especially the bonus) to the 4 states may require a bit of research.
