You will file a part-year Georgia return and a part-year Alabama return. Your income is considered sourced in the state in which you provide the services. Therefore, two months of your W-2 income should be allocated to Georgia and 10 months should be allocated to Alabama. Since you overpaid in taxes for Georgia, you will get a refund of taxes paid. However, you withheld nothing for Alabama, so you will owe taxes to that state.
The first thing you want to do is make sure you've filled out the Personal Info section correctly:
- With your return open, select My Info in the left-hand menu.
- Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
- At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
- Select Continue to return to your Personal info summary.
- Click on State on the left hand side.
- Add the state of Georgia as a part-year resident.
- Follow the on-screen instructions and allocate your W-2 wages accordingly.
Lastly, please contact your HR department and start your state withholding for Alabama.
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