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simplylee
New Member

I am moving from a state with no state tax to a state with state tax. Can my new state require me to pay tax on money acquired in my original state?

 
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4 Replies

I am moving from a state with no state tax to a state with state tax. Can my new state require me to pay tax on money acquired in my original state?

@simplylee - no.  when you file in the new state, you want to file as a part year resident for that first year of residency.  When you do that, TT will reconcile what was earned in the former state and what was earned in the new state.  You'll only be taxed on what you earned in the new state. 

 

and maybe, can you explain what you meant by "acquired".  That may add to my explanation. 

I am moving from a state with no state tax to a state with state tax. Can my new state require me to pay tax on money acquired in my original state?

When you are entering information into MY INFO, you will be asked if you lived in any other state and will have the chance to enter the dates in which you lived in each of those states.   So the software will be able to use the income you received during the time in the state that has a state tax for that state return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
rjs
Level 15
Level 15

I am moving from a state with no state tax to a state with state tax. Can my new state require me to pay tax on money acquired in my original state?

What's important is when you receive the income, not where the income is from. The new state cannot tax income that you received before you lived there. The new state can tax any income that you receive while you are living in the new state, no matter where the income is from. For example, if you work in the old state after you have moved, the new state can tax the income that you earn for working in the old state while you are living in the new state. If you sell a home that you own in the old state, and the sale closes after you have moved to the new state, you would have to pay tax to the new state on your gain from the sale, even though the sale took place in your old state.

 

rjs
Level 15
Level 15

I am moving from a state with no state tax to a state with state tax. Can my new state require me to pay tax on money acquired in my original state?

I said yesterday "The new state cannot tax income that you received before you lived there." There's an exception to that. If you work in the new state before you move there, you have to pay tax to the new state on any income that you earn for working in that state, even when you don't live there.

 

 

A note to anyone else reading this discussion:

All of the answers here, from me and others, apply specifically to simplylee's situation of moving from a state that has no state income tax. If you move from a state that has state income tax, the answers would be very different, and the details would depend on the particular states involved.

 

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