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nickwallen21
New Member

Why do I owe in one state but not owe or get a return in another after I lived in two states

Also, my employer did not change my info so state 1 was still taxing me even though I lived in state 2
1 Best answer

Accepted Solutions
DS30
New Member

Why do I owe in one state but not owe or get a return in another after I lived in two states

Because you were a part-year resident of 2 different states during 2016, you will need to file a part-year state income tax return in both states.

You will need to divide your wages based on the time in each state and report these amounts separately on your part-year resident state income tax returns of each state.

However since some of your income while a part-year resident of state 2 is considered state 1-source income, you will also need to report your state 1-source income (while you lived in state 2) on your part-year state 1 resident state income tax return.

It may seem like you are being double taxed on your state 1- source income by needing to include it on both your part-year state 1 and state 2 state income tax returns but you will be able to claim a state tax credit on your state 2 part-year return for taxes paid on your state 1 part-year state income tax return related to your state 1 -source income.

You will want to work on your state 1 part-year resident return first so that you can determine the amount of state tax credit you will be able to take on your state 2 part-year state income tax return.

If your employer only withheld taxes from state 1, you may owe taxes in the state for which no state withholdings were taken out but you may get a refund in the state where extra withholdings were taken out.

Check below for more information about filing a part-year state tax return (Please select "see entire answer" to see full answer)

https://ttlc.intuit.com/replies/3302008


View solution in original post

1 Reply
DS30
New Member

Why do I owe in one state but not owe or get a return in another after I lived in two states

Because you were a part-year resident of 2 different states during 2016, you will need to file a part-year state income tax return in both states.

You will need to divide your wages based on the time in each state and report these amounts separately on your part-year resident state income tax returns of each state.

However since some of your income while a part-year resident of state 2 is considered state 1-source income, you will also need to report your state 1-source income (while you lived in state 2) on your part-year state 1 resident state income tax return.

It may seem like you are being double taxed on your state 1- source income by needing to include it on both your part-year state 1 and state 2 state income tax returns but you will be able to claim a state tax credit on your state 2 part-year return for taxes paid on your state 1 part-year state income tax return related to your state 1 -source income.

You will want to work on your state 1 part-year resident return first so that you can determine the amount of state tax credit you will be able to take on your state 2 part-year state income tax return.

If your employer only withheld taxes from state 1, you may owe taxes in the state for which no state withholdings were taken out but you may get a refund in the state where extra withholdings were taken out.

Check below for more information about filing a part-year state tax return (Please select "see entire answer" to see full answer)

https://ttlc.intuit.com/replies/3302008


View solution in original post

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