I think you are confusing residency with where you were living. Being a resident means establishing yourself. Here are some things states look at when determining residency from The Tax Book:
- Registering to vote and voting in the new state.
- Purchasing residential property.
- Titling and registering vehicles.
- Paying state income tax to another state
- Notifying the state of previous legal residence/domicile of the change in state of legal residence/domicile.
- Preparing a last will and testament which indicates the new state of legal residence/domicile
My guess would be that you are a VA resident and GA nonresident. Your resident state taxes all income but gives a credit for income taxed by another state. Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.
- First, prepare your non-resident GA return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
- Then prepare your resident state VA return and it will generate a credit for your income already being taxed in the non-resident state.
- The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.
It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order. You get credit for the lower state tax on the lowest taxable amount.
- Each state calculates taxable income differently.
- Each state has its own tax rate/ system.
- You get the lowest of both categories as a tax credit.
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