@Dakenned1 wrote:
Thank you for your response. So, are you saying I can claim the expenses on both returns? That's what I truly need to know...both, or just the one I moved out of (NY), or just the one I moved into (VA)? It says nothing about that in the links you sent, which I had already read prior to my question. It's confusing and unfortunately, they don't supply enough information. I don't want to get this wrong and end up paying a penalty.
Neither state specifies or limits the deduction to only if you move in or out of the state. However, don't list the expenses twice. Generally, you will assign the expense to the state where your permanent address was located as of the date you paid the expense.
These are miscellaneous itemized deductions under the 2% rule. You still enter them in the federal deduction section even though no federal deduction is allowed. Once entered, they will flow to the state return(s). I believe that when you start working on your state returns you have the ability to allocate your various expenses to the state where they belong. Generally speaking, you will allocate your expense to the state where your permanent address was located as of the date you paid the expense. Whether you actually get a tax benefit depends on your overall facts and circumstances.
