How do I handle taxes if I moved to work in another state but still have a home that I am keeping in my old state.

[rjs]

You are a part-year resident of each state. For the year that you moved you will have to file a part-year resident tax return for each state, assuming that both states have state income tax. You will pay tax to each state on the income that you earned while you lived and worked in that state. Check your pay stub to make sure your employer is withholding tax for the correct state.

I am assuming that you worked in the same state that you lived in, both before and after you moved. If that's not true, post details.

Owning a home in another state that you don't live in makes no difference. However, if you rent out your home in the old state, that is income from that state, which adds complications. If you are renting out your old home, post details.

Also note that if you sell your old home more than three years after you moved, you will lose part or all of the exclusion of gain from selling the home.

[TomD8]

Did you actually move to a new state, or do you live in one state and work in another?

If you live in one state but work in another, then the answer to your question will largely depend on which two states are involved.  That's because several states have reciprocal agreements with neighboring states.  If this is your situation, we'll need to know the two states involved.

[vincentaraujo]

Thanks for the response. I moved to Florida from Virginia. I own a home in Virginia and moved to Florida where I now work and live in a home I rent. I have no income from Virginia, only Florida. I plan to keep my home in Virginia so when I retire in 5 years or so, I can return to Virginia. Do I just file in Florida? The property tax I pay for my home in VA, can I itemize that with my Florida return? If not, what do I do with that? Thanks for your guidance. 

[TomD8]

As @rjs said, in the year of your move you would file a part-year resident tax return for Virginia.  There is nothing to file in Florida because Florida has no personal income tax.    In the tax years after the year of your move, you would have no income tax obligation to the State of Virginia unless you have Virginia-source income.  You can claim your Virginia property tax on your federal tax return if you itemize deductions.

[vincentaraujo]

That makes sense. Thank you. My only question is the part about not paying Florida tax. I moved in April and I have VA pay until then. After April I was in Florida and earned pay from there the rest of the year. Would that mean I would need to file federal in both states? Thanks. 

[xmasbaby0 · Accepted solution]

You prepare and file ONE federal tax return entering ALL of the income you received during the tax year, no matter what state you lived or worked in when you earned it.  Use the mailing address you want the IRS to use if the IRS needs to mail you a letter or a check.   You will prepare and file a VA state tax return for the income received while you lived/worked in VA.  You will not file a state return for FL since FL has no state income tax.

[vincentaraujo]

Perfect. Thanks.