topic Re: relocation in Retirement tax questions

relocation

harley0693 — Wed, 11 Feb 2026 09:52:51 GMT

I am retired, if I sold my house and move from one State to another, what is the taxes implications? to file two tax returns in the relocation year?

Re: relocation

xmasbaby0 — Wed, 26 Jun 2024 16:34:07 GMT

You would file part-year state returns for each of those states----but that depends on what states you are talking about. There are a few states with no state income tax, and several states with reciprocal agreements. We would need to know what states you are referring to to be more helpful.

https://ttlc.intuit.com/questions/1901227-how-do-i-file-a-part-year-state-return

https://ttlc.intuit.com/questions/1901560-how-do-i-file-if-i-moved-to-a-different-state-last-year

https://ttlc.intuit.com/questions/2895983-how-do-i-allocate-split-income-for-a-part-year-state-return

https://ttlc.intuit.com/questions/1901267-which-states-don-t-have-income-ta

https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/states-reciprocal-agreements/L4JKSLqpR_US_en_US?uid=lwsfxwc8

Per the tax laws that changed for 2018 and beyond, moving expenses are not deductible on a federal return except for certain active duty members of the military.

There are several states that allow a deduction for moving expenses on the state return: AZ, AR, CA, HI, IA, MA, MN, NJ, NY, PA and VA You can enter your moving expenses in the federal software and the information will flow to your state return.

Go to Federal>Deductions and Credits>Other Deductions and Credits>Moving Expenses

SALE OF HOUSE

If your gain was more than $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale must be reported on your tax return. Whether you re-invested the gain in to another house is irrelevant. If you have a Form 1099-S go to Federal>Wages and Income>Less Common Income>Sale of Home (gain or loss)

If you owned and lived in the home as your primary residence for at least 2 of the last 5 years on the date of the sale, you do not have to report the home sale if the gain is less than $250K filing Single, or less than $500K filing Married Filing Jointly (and you both owned and lived in the home for at least 2 years).

If you are using online TT, you need Premium software to report the 1099-S

NOTE: If you have ever used the home as rental property or claimed a home office, you have more information to enter

Re: relocation

Gabriella_EA — Wed, 26 Jun 2024 16:37:30 GMT

When you live in two different states in one tax year, you'll likely need to file three tax returns: one federal, and one for each state. There are a few states (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming) that have no income tax, and New Hampshire only taxes interest and dividend income. If you live in one of those states, you won't need to file a state tax return for that state (except potentially New Hampshire).

If you sold your primary residence, you may have to pay some tax on gains from the sale of the home, but it's also possible you can exclude all or most of the gains from your income. Even if you don't have to pay tax on gains from the sale of your home, it's recommended to report the sale on your federal (and potentially state) tax return. If you'd like to read more about selling your home, we have a great article here.