Posting on behalf of my fiancé. Seeking expert advice.
He worked a part-time job in Michigan from January 2020 to March 2020. He moved to Georgia in May 2020 and began working a new job. He has not updated his driver's license to a Georgia license yet, and likely will not have time before the end of the year. He does not have a car or anything in his name, just the apartment.
What address would he use when filing 2020 taxes - Michigan or Georgia? Will he be penalized for working in two states? Will he have to pay Michigan taxes on all the income made in Georgia? Will he be penalized for not updating his license right away?
You can google the state laws for obtaining a drivers license in GA by going to the GA site for that yourself--we do not know state laws pertaining to driver's licenses here.
But your BF's driver's license has nothing to do with how he files his tax return unless it causes a problem for him when he wants to e-file a GA return if GA wants a GA driver's license to e-file. (if he does not have one and the state requires a GA ID or license then he will have to mail his GA tax return)
When BF prepares his 2020 tax return he needs to use his current address---the address where he can receive mail from the IRS. He will file a normal federal tax return (ALL of his 2020 income goes on the same federal tax return---so he must make sure he enters the W-2's from the MI employer and the GA employer on the same return) and part-year tax returns for both MI and GA. He will have to pay careful attention as he prepares his tax returns so that he pays MI state tax only for the time he lived in MI and GA for the time he began to live and work in GA. When he is preparing the federal return it will ask about what states in which he earned income and provide a spot to enter the dates. That information will flow over to the state forms.
Here's how to file two part-year resident returns in TurboTax:
Your fiance became a resident of GA for tax purposes (and ceased being a resident of MI) on the day he began living in his new home in GA. All his income from that date forward is taxable by GA. As @xmasbaby0 stated, his DL and license plates are irrelevant to determining his residency for tax purposes.
You have just 60 days after your move to update your Georgia driver's license when moving within the state, so make sure you put this task on your to do list. Note that if your license is expiring within 150 days, you will not be able to change your address and will instead have to renew your driver's license.
How long do you have to get a Georgia driver’s license or ID card?
Georgia requires new residents to get a state driver’s license within 30 days of becoming a resident, so act fast! Note that Georgia considers you a new resident as soon as you rent or buy a home in the state.