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sdickson418
New Member

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

I lived and worked in DC for 7 months, then left my job and moved to PA for the remaining 5 months of 2018 (did not have W-2 income during the 5 months in PA).

Do I need to file in PA? I did have interest income during the 5 months. I was not expecting to, however in Turbo tax when I enter the fact that I moved to PA, I can't seem to get around filling out a PA tax form.

Follow up question- if I DO need to file in PA because of the interest income, do I need to separate the income by month so I only pay taxes in PA on the interest earned in the last 5 months of 2018 (and then only pay tax on the interest earned during the first 7 months for my DC taxes)?

1 Best answer

Accepted Solutions
HelenaC
New Member

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

Yes, you'll need to file a PA income tax return if you received interest income while a resident of PA and you meet the minimum filing requirements for PA. Yes, also to, allocating the interest income between DC and PA. 

See the following instructions on how to do that: How do I allocate (split) income for a part-year state return?

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5 Replies
HelenaC
New Member

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

Yes, you'll need to file a PA income tax return if you received interest income while a resident of PA and you meet the minimum filing requirements for PA. Yes, also to, allocating the interest income between DC and PA. 

See the following instructions on how to do that: How do I allocate (split) income for a part-year state return?

aljacobowitz
Level 2

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

I have a similar situation, but with no interest earned. I earned income in Louisiana for the 5 months of the year. Move to Pennsylvania for school for the remaining 7 months, and did not earn any income of received a W-2 for any job in PA.

DaveF1006
Employee Tax Expert

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

if you earned NO money in PA, you do not need to file a state return. Now if you earned interest or other unearned income for the full year then you should file a state return allocating the money earned between the two states.

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alexk1998
New Member

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

I have a similar issue. I moved to MA for grad school from indiana and was receiving unemployment as my only income before I moved to MA due to the pandemic. After moving to MA the unemployment from Indiana stopped and I never applied for unemployment in MA because I had never worked there. do I need to file a state return for MA? the way my taxes are currently set up it asks me to fill one our for MA but I never received any money in MA so I'm confused. 

DawnC
Employee Tax Expert

If I moved to a new state but didn't earn income in that state, do I need to file a 2nd state return? (DC to PA)

It depends on whether or not your move to MA was permanent or not.   If you intend on returning there after completing grad school - no, you should not have to file the MA return.   Since you were in MA for grad school, that is considered a temporary residency.   As long as you intend to return to IN after school, Indiana is your resident state.   In the Personal Information (My Info) section, make sure you have indicated that IN is your resident state and that you have not listed MA anywhere on your return.   When you are asked about what states you lived in, enter IN for the entire year.   You can use a MA mailing address if you don't want to use your IN address, but when it asks what states you lived in, only indicate IN since you are in MA temporarily for education purposes.  

 

As long as you did not earn any income in MA, the return will not generate.   You should have your federal return and 1 resident state return for IN.   Now, if you work in MA while being a student there, you will need to file a non-resident return there.  But there is no need to list MA as a ''resident'' state as long as your time there is temporary and you maintain residence in IN. 

 

This is all assuming you intend to return ''home'' to IN after school.  If you permanently moved to MA and you are not intending to return to IN, then you are a part-year resident of both states and will need to file a federal return + 2 part-year state returns.  In this case, you would enter the moving dates in the Personal Information section, and next year, only file a MA resident tax return, assuming you don't move again in 2021.   @alexk1998

 

What is my state residency status? - See the 2nd residency student example here; it is very similar to your situation.  😉 

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