BillM223
Expert Alumni

State tax filing

"but had no CO income"

 

You owe tax to the state where you live and to any states where you physically work.

 

In your case, you live in Colorado (because this appears to have been a permanent move, right?) AND you work in Colorado. It makes no difference to Colorado that you were doing work for a company in another state - you were physically in Colorado when you did the work. This is true for most states.

 

So you have to do the following:

1. File a Colorado resident return - yes, you owe them full tax for the year.

2. File a Georgia nonresident return in order to get your Georgia withholding back.

3. Immediately ask your company to stop any withholding in any state but Colorado (they may not do Colorado, but you can ask).

4. Either get your company to withhold for Colorado or failing that, learn how to make estimated tax payments to Colorado, to avoid underpayment penalties.

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