AL resident work in GA

[myshelf61]

My husband works in GA but we moved to AL this year. We just got married, and I'm trying to do our state taxes for the first time. His employer only deducted taxes on his W-2 for GA, and I'm not sure how to proceed. There's a screen on the AL state page that asks for AL income, but only shows his total as GA income. What do I enter there? Do I compute the % of his income that was made in GA and put that in the AL income field?

[TomK2023]

You will need to file a Georgia part-year resident tax return and an Alabama  part-year resident tax return.

In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state. 

If you were a resident of two different states during the tax year (for example, if you moved from one state to another), you'll normally file part-year returns in both states, assuming each state collects income tax and you had income in each state.

TurboTax handles part-year returns, but you need to make sure you've set up your personal information correctly for us to do so. We'll ask about where you lived in 2023 when you set up your personal information.

If you need to add this information after you've begun your return:

Note: If your TurboTax navigation looks different than what’s described here, learn more.

1. Sign in to TurboTax and select My Info.
2. A Your personal info screen appears.
3. Question number 2 asks you the state(s) you lived in during 2023. Select your state of residence from a dropdown menu.
4. You'll also be asked if you lived in another state in 2023. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
5. Fill out the date of when you moved to your current state.
6. If the rest of your information is accurate, select Continue.

After you finish entering your federal return info, you'll automatically move to the State Taxes section, where you'll see your part-year states listed. We suggest you prepare the return for your former state first, followed by the return for the state you currently live in.

If you are a legal resident of Georgia for only a portion of the tax year and are required to file a federal income tax return, you are required to file a Georgia Form 500 Individual Income Tax Return. 

State of Georgia Department of Revenue

According to Reg. 810-3-2-.01- Individuals domiciled within Alabama (residents) are taxable on their income, whether earned within or without Alabama, subject to certain exclusions and exemptions as provided under Alabama income tax law, regardless of their physical presence within Alabama at any time during the taxable year. 

Alabama Department of Revenue

[myshelf61]

Thank you,

  I've done all that and filed for part year for both states.

  But my question is: am I supposed to indicate somewhere for my spouse's income the portion that was earned while living in AL? In the income section for the AL taxes, there's a screen named Alabama Wage Summary. Because my spouse's employer only withheld taxes for AL, it doesn't show any amount in the Alabama Earnings field for him - it does for me because my employer withheld taxes for both states. So my question is - do I need to enter anything there?

[AmyC]

Any GA wages earned while living in AL would be reported on the AL return. Since the wages are reported to both GA and AL, As the resident state, AL will give a credit for the tax paid to Ga on the same income.

Since you have already filed, you may need to file an amended return. You would only file if there is much difference in tax,  Since you would be reporting income and then taking a credit against it, I don't see where there would be much difference.  You get credit for the lower state tax on the lowest taxable amount.

• Each state calculates taxable income differently. 
• Each state has its own tax rate/ system.
• You get the lowest of both categories as a tax credit.

Once your original return is accepted and the finances are settled, you can file an amended return. 

• Save a copy of the original return before doing an amended return. 
• See: 
  • I need to amend my state return.
  • Can I e-file my amended state return?

If you must paper file, tracking is recommended.