Moved from NJ to DE end of 2021

[alanhelm]

My wife worked in NJ and retired on 12/3/2021 (so she had income in NJ from 1/1/21 thru 12/3/21).

We have also paid estimated quarterly NJ taxes. I am retired. We permanently moved from NJ to DE on 12/6/21.

Do we need to file a 2021 NJ income tax return as usual even though our residence has been in Delaware since 12/6/21? 

Do we need to file a 2021 DE income tax return since we resided in DE from 12/6/21?

Thanks!

[MaryK4]

Yes you will probably need to file in both New Jersey and Delaware.  

Part-year Delaware residents must file if they received income from any source while a Delaware resident.  (so you would need to file unless you received no retirement income in December)

Part-year New Jersey residents whose gross income from all sources for the entire year is greater than $20,000 ($10,000 if single or filing separately) must file Form NJ-1040 to report income received while a resident and Form NJ-1040NR if you have any income from a New Jersey source while a nonresident.

[alanhelm]

Thanks so much Mary!

So, since we received interest/dividend income in December we will have to file a DE state return just for that December income, correct?

And for NJ, do we not pay NJ tax on that same December income since we lived in DE?

Hoping TurboTax Premier which I have used for well over 10 years will help with this 🙂

Thanks again,

Alan

[MaryK4 · Accepted solution]

For New Jersey, you will have to report the December income (it will be a nonresident return).  See the screens below to see how to allocate the NJ resident and then the NJ nonresident income.  (The screen shots are from the desktop version so they may be a bit different if you use online but will be essentially the same).

For Delaware, you should file as Part-Year Residents electing to file a non-resident return - This option may be advantageous if, during the period of non-residency, you had any income from other states or sources outside of Delaware. You will report zero W2 wages (for the NJ work) and enter the December dividends etc as DE income.

TurboTax will guide you, but if as you are working through you need help or have questions, please post!

@alanhelm

[alanhelm]

Thanks again Mary, really appreciate your quick help and expertise!!