RobertB4444
Expert Alumni

Deductions & credits

If you spend an exactly equal amount of time in the two places - which seems unlikely given the number of days in a year, but it's your question - then your state residency is determined by where your homestead is, where you get your mail, where you're registered to vote and which state issued your drivers license/state ID.  

 

If all these are equal then you can flip a coin.  Or figure out the tax rate for residents vs non residents in the states in question and pick the situation that suits you best.

 

Whether your company's address on your W2 effects your tax situation depends on the state in question.  Different states have different rules on taxing income earned from sources within that state by a non-resident - and some of those rules have been changed due to the pandemic. 

 

You'll need to do some research on the state your W2 is from and then - when you're ready to file - do the returns in this order -

 

non-resident state

part year resident state

resident state

 

If you have had to pay taxes to the first two states it should be deductible on your resident state tax return.  (Which is why it may be beneficial for your resident state to have the highest tax rate, weirdly.)

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"