If I earn income in IL from 1/1 - 10/31 and earn income in NC from 11/1 - 12/31 the same year, how do I pay Q4 estimated taxes? Do I split the payment to both states?

[caldus85]

I was living in IL until the end of October this year. After that, I moved to NC. I was living with family temporarily for a month or so and then after that got my own place for the rest of the year. How do state estimated taxes work in this scenario? Since I was making income in 2 different states during the 4th quarter of 2022, does that mean I need to make a payment to IL and make one to NC as well? I would assume that for the period from 9/1 - 10/31, I would pay that estimated tax to IL. Then for the period 11/1 - 12/31, I would pay that estimated tax to NC. Is that correct or what should I do?

[Anonymous_]

@Mike9241 

[Mike9241]

someone else will have to answer about NC

when you go through the interview process use NC as your current state of domicile/residence.

Turbotax will ask if you earned income in any other state which you will answer yes and specify IL

then eventually you'll get to the interview section for IL 

you will enter the dates of residency 

and then enter only the income earned in Illinois.

this should complete Schedule NR column B

column A comes automatically from your federal return

*

don't claim any credit on one state for taxes paid to the other state. that would only apply if while a resident of one of these states you earned income that was taxed by both states. 

from Illinois CR (for taxes paid to another state) instructions

You should file Schedule CR if you were a part-year resident of Illinois during the tax year and you paid income tax to another state on income you earned while you were an Illinois resident and the income subject to the other state’s tax is included in your Illinois base income (line 46 of schedule NR column B) and you did not deduct the income tax paid to the other state when you figured your federal adjusted gross income as shown on your Illinois tax return

[NCperson]

@caldus85 as the question was about estimated taxes and not filling out the tax return itself....two suggestions:

1) this is an estimate only so your approach appears fine.  You are just trying to hit ' the broad side of the barn' with the estimate. 

2) if the two state returns are available by Jan 15, you could use TT and plug in all the numbers for federal and the two states, which will give you a better estimate of what you will ultimately owe each state.  You do have to be sure each state reflects "part year residents" (which it should if you answer the residency questions correcrtly).. 

The NC state return should calculate as 'part year'.  there is nothing special you need to do.  As long as you enter the dates of residency correctly and the incomes for each respective state, NC should calculate easily.