State Filing Status During a Move Out of State

[GGBJr]

My  Texas apartment lease expired in mid-December of last year, and I wanted to move to the Northeast.  I stayed with family members in NH until I decided to make NJ my residence in mid-February of this year.  Do I remain a resident of the state of Texas until I formalized my move to NJ?

Also, I submitted a Form 8822 (Change of Address) to use a relative's NJ address to receive any mail during this transient period.  Does this impact the timing of my selecting NJ as my new address?

[Vanessa A · Accepted solution]

No, when you left TX with the intention of not returning, you were no longer a TX resident.  

Did you earn income while a resident of NH or NJ?

If so, then you will need to include the income you earned while a resident of either state on a Part year or non resident return.  

If you did not earn any income while a resident of either of the states, then you would not have a filing requirement for that state. 

[GGBJr]

Thank you for your very prompt reply!

If I did have income during January and part of February of this  year, then I will have to report that to NH for the 2024 tax year?

Does the notification of the IRS about a change in mailing address play any role as to when I took up residence in NJ for tax purposes?  What is the trigger for the start date of my NJ residence for tax purposes - move-in date or decision to reside in the state?

[DawnC · Accepted solution]

NH doesn't have an income tax on wages, so you won't need to file a NH return.   For NJ:

The NJ Division considers many factors when determining if New Jersey is your domicile, including: 

•  Your intent; 
•  Where you register to vote; 
•  Your driver’s license and vehicle registration; 
•  Where you have family ties; 
•  Whether your federal tax return lists New Jersey as a home address; 
•  Location of bank accounts; 
•  Whether you participated in a New Jersey property tax relief program.

If you became a resident of New Jersey or you moved out of the state during the tax year, you are considered a part-year New Jersey resident.  Part-year residents may be required to file a New Jersey tax return.   Since New Jersey does not have a special form for part-year filers, you must use the regular resident return, Form NJ-1040.  The return provides a line for you to show the period of your residency in the state.

As a part-year resident, you report only the income you earned or received while you were a New Jersey resident. You must prorate all the credits, exclusions, exemptions, and deductions for which you qualify. That means you can take only that part of the full deduction, credit, exclusion, or exemption that represents the amount of time you were a resident of the state.

If you continued to receive income from New Jersey sources after you moved out of the state, or if you received income from New Jersey sources prior to moving to the state, then you also will have to file a New Jersey nonresident tax return, Form NJ-1040NR. In this case, you will file both a part-year resident return and a part-year nonresident return.

You must file a return and pay tax on the income you earned if (see chart linked here:(

[GGBJr]

You have given me a lot to think about!  I had a sizable RMD distribution in the first week of this year, but since NH taxation is somewhat analogous to that of Texas, I won't be filing an NH return for 2024 (as a means of proof that I did not reside in NJ).  NJ voter and auto registrations occurred in mid-February, so I shall use that period as the start of my residence for tax purposes.

You have spent a considerable amount of time guiding me through the intricacies of state taxation for which I am greatly appreciative.  My wife and I have been TurboTax users for almost twenty years, and we enjoy doing tax returns for our daughters and the grandchildren.  But, the complexity associated with the move from Texas makes us appreciate the Community Forum all the more.

Again, my thanks for your efforts and for the time expended!!!