DavidD66
Expert Alumni

State tax filing

First of all, your tax withholding does not determine how your state income is allocated on your tax returns.  Since you lived and worked in two states, you will file a part-year resident return for each one.  As you are preparing each state return, there will be a page where you allocate the portion of your income that you earned in that state and/or while living in that state.  It may or may not be the same as what is on your W-2.   

 

If you did not earn any income in one state while living in another, the income allocated to each state will add up to the total income reported on your W-2 (Box 1).  If you lived in one state while working in another, the amounts allocated to the two states will added up to more than the total income on your W-2.  In the case of the later, the state you resided in while working in the other state will issue you a credit for tax paid to the other state so that you won't be double taxed.

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