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Moving states

Spouse and I recently move from Texas to Illinois. I travel the country for my job got hired in Texas worked in Texas, Colorado, and Illinois. What state tax would be according ? 

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1 Best answer

Accepted Solutions
Hal_Al
Level 15

Moving states

As an IL resident, you must file an IL return.  In the year you moved, you will file as a part year resident and pay tax on  all income earned after the date of the move.

 

Technically, you need to file a CO return to pay tax on the income earned while working there. IL will give you a credit for the tax you pay to CO.

 

TX doesn't have an income tax.  

 

Do you really need to file a CO return? 

 Yes, but "nobody" does. See http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/  If you live in a state without an income tax (e.g.  TX), while working in CO,  it’s more likely you should file in the work states. You can't use the "it all comes out even" rationale for not filing.

 

 

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2 Replies
Hal_Al
Level 15

Moving states

As an IL resident, you must file an IL return.  In the year you moved, you will file as a part year resident and pay tax on  all income earned after the date of the move.

 

Technically, you need to file a CO return to pay tax on the income earned while working there. IL will give you a credit for the tax you pay to CO.

 

TX doesn't have an income tax.  

 

Do you really need to file a CO return? 

 Yes, but "nobody" does. See http://money.cnn.com/2013/06/28/pf/taxes/business-traveler-tax-threat/  If you live in a state without an income tax (e.g.  TX), while working in CO,  it’s more likely you should file in the work states. You can't use the "it all comes out even" rationale for not filing.

 

 

TomD8
Level 15

Moving states

Here is Colorado's law:

 

A nonresident is required to file a Colorado income tax return if they:

  • are required to file a federal income tax return, and
  • had taxable Colorado-sourced income.

https://tax.colorado.gov/part-year-and-nonresident

 

Filing a CO tax return in that situation is a legal, not a technical, requirement.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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